Kenertec, Nuansa in Indonesian coal JV

South Korean firm Kenertec Co. said on Thursday it has signed a cooperation deal with Indonesia's energy company, Nuansa Group, to set up a joint venture for a steady supply of Indonesian coal.

The joint venture, to be set up in Indonesia within six months upon signing the deal, will aim to secure exploration, mining and distribution rights for Indonesian mines, the company said as quoted by agency.

The value of the joint venture was not yet determined.

Kenertec said the JV planned to initially import 1 million tonnes per annum of Indonesian coal starting next year to be sold to Korean customers such as power plants.

The venture also includes POSCO Engineering and Construction, a unit of POSCO Co. Ltd. , which will be responsible for building railways and logistics terminals in Indonesia in exchange for securing coal mines.

The timeframe and the value of these projects have yet to be decided, Kenertec said. (*)