Indonesia Power, PTBA reach deal on coal price
Tuesday, May 21 2013 - 02:10 AM WIB
PT Indonesia Power (IP), a subsidiary of state electricity firm PT Perusahaan Listrik Negara (PLN), has reached a deal with state-controlled coal mining company PT Bukit Asam Tbk (PTBA) on coal price for 2013 period to be allocated for IP?s Suralaya power plant.
The price is set at Rp 631,241 per ton on a FOB Tarahan port, an industry source told Petromindo.com.
Bukit Asam also agreed to supply up to 5 million tons of coal to Suralaya power plant unit 1-7 this year. Last year, PTBA supplied 5.75 million tons of coal.
Last year for the period from July to December, Indonesia Power agreed to pay an amount of Rp 809,000 per ton on CIF basis of coal supplied by PTBA and for January to May 2012 period, IP paid Rp825,000 for each ton of PTBA's coal.
PTBA has been supplying coal for the Suralaya power plant ever since the plant started its operation, however this is the first deal where the coal is sold on FOB basis, while previous transactions were done on CIF basis.
On March 14, 2013, PTBA signed sales agreement with Indonesia Power for between 5 and 8 million tons per annum of coal with 5,000 kcal/kg CV (GAR) on FOB basis via Tarahan Port. The coal will be used as fuel for the Suralaya power plant in Merak for a period of 10 years between January 1, 2013 to December 31, 2022. Coal price would be decided by both parties for each year during the contract period, with aspects such as Indonesian coal price reference (HBA) and railway transportation cost as the determining factors.