Indonesia Power picks coal suppliers

PT. Indonesia Power said on Friday it had appointed East Kalimantan coalminers PT. Berau Coal and Kideco Jaya Agung winner of 4 million tonnes coal supply contract to its 3,400-MW coal-fired Suralaya power plant in Banten province.

Bambang Susianto, General Manager of Suralaya told Petromindo.Com that Berau coal would supply 2.5 million tonnes and Kideco would supply the remaining 1.5 million tonnes.

First shipment of the 1-year contract would commence September this year, he said.

He said coal price for the contract would be at Rp.343, 650 per tonne (US$=Rp.9, 100). He did not say whether the price is FOB or CIF.

Indonesia Power, the subsidiary of state electricity firm PT. PLN, was forced to seek 4 million tonnes coal supply for this year and next year after it had locked in price battle with main supplier PT. Tambang Batubara Bukit Asam, which resulted in reduced supply from the state coal miner to Suralaya.

Suralaya consumes some 11 million tonnes of coal annually. (godang)