Kideco bags overseas new term contracts, eyeing Cilacap supply

East Kalimantan coalminer PT. Kideco Jaya Agung said it had bagged three new term supply contracts to South Korea, France and India and is in talks to secure another domestic coal deal .

Kideco?s managing director Kim Sung Kook told Petromindo.Com on Tuesday that the company had bagged 400,000 tones PA contract with South Korean utility firm Kosep for 5 years, 400,000 tones PA with French utility firm Electricite de France for 3 years and 700,000 tones PA contract with Indian utility giant Tata Power Company Limited.

Kim did not say whether shipments for the contracts had commenced.

Kim said with Kosep contract, Kideco was now coal supplier for all five South Korean generating companies with annual delivery volume of 3.5 million tones per annum.

Kideco is planning to produce 18 million tons of coal this year with 12 million tones designated for export market. Kideco?s production had been fully contracted throughout this year.

Kim also said that Kideco is in final talks with Cilacap 2x300 MW power plant to supply 500,000 tones PA of coal starting 2006. ?Kideco and Cilacap is finalizing the deal, one of the most crucial issues right now is price,? he said without further elaborating. Industry sources said that apart from Kideco, Cilacap had also been engaged in serious talks with south Kalimantan coal miners PT.Adaro Indonesia and Banpu?s Jorong Barutama Greston. When fully operational next year, the plant would require 2.2 million tones PA of coal.

Kim also said Kideco is looking to renew its 2 MTPA contract with Suralaya whose contract would expire this year. Industry sources said Indonesia Power would likely open coal supply bid this coming June. (alex)