Indonesia Power reduces coal supply from PTBA

PT Indonesia Power (IP), a unit of state electricity firm PLN that runs Suralaya 3,400-MW coal ?fired power plant in Banten province cuts 2009 coal offtake from state coal miner PT Tambang Batubara Bukit Asam (PTBA) as the former excess coal on its stockpile, a PTBA top official said on Wednesday.

CEO Sukrisno told reporters that IP has cut 2009 coal offtake by 500,000 to 5.6 million tonnes this year. PTBA is contracted to supply 6.1 million tonnes per annum of coal to Indonesia Power under long-term contract. Both parties negotiate coal prices annually.

?IP has been asking for supply reduction since July, when it started to have excess supply problem at its stockpile,? he said.

Sukrisno did not know if IP is also asking for supply cut in 2010. ?We don?t know. But if IP ask for supply cut PTBA can export the unlifted volume,? he said, adding that both parties has started negotiation on 2010 coal supply volume and price.

Separately IP CEO Djoko Hastowo told Petromindo.Com that the company has yet determine the exact supply volume it sough from PTBA in 2010. ?IP is still in the budgeting process,? he said. (bernard)