Kideco, Indonesia Power in talks to increase coal supply to Suralaya

East Kalimantan coal producer PT. Kideco Jaya Agung and PT. Indonesia Power, a unit of state electricity firm which runs Suralaya 3400-MW coal-fired power plant are in talks over the possibility to increase 2004 coal supply to Suralaya, which is serious coal supply shortage, a Kideco executive said.

?Kideco is in talks with Indonesia Power to increase 2004 coal supply from 2 million tons as contracted to around 2.5 million tons. Kideco is able to immediately increase its supply from around 180,000 tons per month to 230,000 immediately to help Suralaya to meet its coal requirement,? said Kideco Managing Director Kim Sung Kook.

Last year, Kideco was contracted to supply 2.5 million tons to Suralaya, making Kideco the second largest supplier to Suralaya after state coal mining firm PT. Tambang Batubara Bukit asam (PTBA), which supplied around 6 million tons.

Suralaya is in serious coal-supply problem as PTBA was forced to cut supply to Suralaya due to transportation problem. On Thursday Indonesia Power said coal stock in Suaralaya was only enough for 6-days of operations. (alex)