Indonesia Power to hold tender for coal supply to Suralaya
Tuesday, February 15 2005 - 04:51 AM WIB
Company operation director Achmad Sadikin said on Tuesday the supplies would replace the supplies from PT Kideco Jaya Agung, PT Adaro Indonesia and PT Berau Coal, whose contracts with Indonesia Power are due at the end of this year.
The companies are supplying coal to Suralaya to cover the shortage of supplies from state owned coal company PT BA, the traditional supplier of coal to the power plant, which is facing transportation problems to deliver its coal. Suralaya now consumes about 10 million tons of coal per year, 60 percent of which came from PT BA and the rest from the three companies. The contract with PT BA expires in 2014.
Achmad said the new supply contracts would be valid from 2006 to 2009.
?We expect the first coal delivery under the new contracts to come in early 2006,? he said.
He said a company must have a production capacity of more than 1 million per year in order to participate in the bidding.
Small companies are allowed to merge in order to meet the requirement, he said.
?We deliberately hold the tender much earlier than the first shipment schedule in order to allow as many companies as possible to participate in the bidding. Small companies will have much time to consolidate or merge to meet the tender?s requirements,? he said.
He also said coal stock at Suralaya was now safe at 300,000 tons. The firm will gradually increase the stock to 500,000 tons.
?There won?t be a shortage of coal supplies this year,? he assured. (Godang/Alex)