Kideco settles 2008 coal prices with TaiPower, KEPCO

East Kalimantan coal miner PT.Kideco Jaya Agung has recently agreed on 2008 coal supply prices with TaiPower, a senior official said.

CEO King Sung Kook told reporters on Thursday that the company which supply TaiPower on a 1.5MTPA long-term contract will sell 900,000 tonnes at $52-55 per tonne and 600,000 tonnes at $88 per tonne on FOB basis.

Kideco and TaiPower negotiate prices annually.

Kim also said Kideco has agreed on 2008 coal price with South Korean electricity firm Korea Electric Power Corp. (KEPCO) at $55 per tonne. Kideco will supply KEPCO 3.5 million tonnes in 2008 under long-term contract with annual price adjustment.

Kim added that the company is currently in negotiation to supply 500,000 tonnes of coal under long-term supply deal with PT.Cirebon Electric Power, the owner of Cireon 700-MW IPP in West Java, which will start production in 2011.

Kideco, Indonesia?s third largest single mine after Adaro Indonesia and Kaltim Prima Coal (KPC), plans to produce 22.2MT this year, with output had been fully contracted.(denny)