Indonesia Power secures 2009 coal requirement

PT.Indonesia Power, a wholly-owned subsidiary of state electricity firm PLN said on Monday its coal supply for 2009 for Suralaya 3,400-MW power plant has been secured and it has no plan to buy coal from spot market.

CEO Tonny Agus Mulyantono told Petromindo.Com on Monday that the company has long-term supply contracts with three major producers and is close to sign another one shortly.

The company will receive 6.1 million tones this year from state coal mining firm PTBA. It also has secured 3MTPA coals supply contract with PT.Berau Coal and another 1MTPA with PT,Kideco Jaya Agung. Both contracts that were signed in 2008 would be good for 10 years, he said.

The company is also in talks to secure 500,000 TPA long-term contract with South Kalimantan coal miner PT.Adaro Indonesia.

Tonny said despite the turbulent weather that hit Indonesian sea in the past weeks, coal inventory is now at the safe level. ?Suralaya?s coal stock is now at 1.2 million tones, enough to support 33 days of operations,? he said.

He also said that Suralaya has carried out construction works at the unloading port to enable two panamaxes to unload coal simultaneously. The facilities, together with continuous ship unloader (CSU) will start operations mid 2010, he said.

Indonesia Power?s Suralaya power plant consumes some 10MT of coal annually. (alex)