Indonesia Power to buy 1 million tons of coal from spot market

State electricity firm PLN is trying to buy 1 million tons of coal from local spot market in May-June period for its 3400-MW Suralaya power plant in May-June period to fill acute supply shortage due to lower supply from state coal mining firm PT. Tambang Batubara Bukit Asam.

?We are scrambling to find 1 million tons in a tight market,? said Indonesia Power director Bambang Istiedi. Indonesia Power is wholly-owned subsidiary of PLN which runs Suralaya.

Bambang said that coal stock at Suralaya remained at critical level of 3-4 days, far for normal stock of around 2 weeks.

Suralaya?s main supplier PTBA had cut coal supply to less than 15,000 tons per day, far lower than contacted volume of 22,000 tons per day, due to transportation trouble experince by state railaway company which transported coal from PTBA?s mine in Tanjung Enim to Tarahan coal port in Lampung.

PTBA?s corporate secretary Milawarma told Petromindo.Com that railway transportation is expected to be normalized in June.

Suralaya gets additional coal supply from Kalimantan coal producers such as PT. Adaro Indonesia, PT.Kideco Jaya Agung, PT. Berau Coal and other small miners in South Kalimantan, but the supply was not adequate to meet the plant?s requirement of around 750,000 tons per month. (godang)