KOSEP eyeing stake at Kalimantan coal mines

South Korean electricity firm Korea South-East Power Co., Ltd. (KOSEP) is negotiating to buy stake at two coal mines in East and South Kalimantan.

General Manager Fuel Team Lee Yong-Jae told Petromindo.Com on Tuesday that the company is in final talks to acquire minority stake at the two undisclosed cola mines. ?KOSEP interest (to acquire stake at the mines) is to secure long-term supply from the mines to fuel our power plants in Korea, therefore we do not wish to acquire more than 10 percent,? he said.

He acknowledged that Korean power firms would likely increase coal import from Indonesia due to its competitive price and abundant supply.

According to him, KOSEP will import 10 million tonnes of Indonesian coal this year, up from 9 million tonnes last year. Indonesian coal accounts for about 40 percent of KOSEP's total requirement.

Lee said currently KOSEP is developing two low CV coal-fired power plants in South Korea with capacity of 2x340-MW and 2x870-MW with completion seen in late 2011 and late 2014.

KOSEP?s main Indonesian coal suppliers are PT Adaro Indonesia and PT Kideco Jaya Agung. (alex/denny)