Indonesia power sign Low CV coal supply deal

PT.Indonesia Power on Monday signed low-rank coal supply deals for its Suralaya 3,400-MW power plant in Banten with a number of producers.

Under the deal, three consortium of suppliers will supply 2.6 million tonnes of low rank coal (4,200-4,400 kcal/kg) per year to Suralaya under 20-years contracts which would start mid-2009.

PT.Arutmin Indonesia and PT.Dharma Henwa consortium will supply 1.305 MTPA per year; PT Kasih Industri Indonesia dan PT Senamas Energindo Mulia consortium will supply 783,0000 tonnes per year, while PT Surya Sakti Darma Kencana consortium will supply 522,000 tonnes per year.

All of suppliers would source their coal from South Kalimantan mines.

Indonesia Power, which is a subsidiary of state electricity firm PLN, will buy the coal at Rp. 248, 171 per tonne CIF or about US$ 27 per tonne CIF.

Indonesia Power CEO Tonny Agus Mulyantono told reporters that the low CV coal would be blended with high CV coal to give the power plant optimum fuel costs and provide coal supply security.

According to Tonny, Suralaya could use 20-40 percent low-CV coal as blend out of 11.5 MTPA of Suralaya?s coal requirement. (godang)