KPC wins 45-million-ton coal contract

Coal mining company PT Kaltim Prima Coal (KPC) has won a 15-year-contract to supply a total of 45 million tons of coal to Japanese firm Electric Power Development Co, Japan?s fifth largest power producer.

The Japanese company, also known as J Power, will receive 3 million tons of thermal coal from the East Kalimantan-based coal miner, but the annual shipment could be increased to 5 million tons depending on demand, KPC?s external relation manager Hari Miarsono told Petromindo.Com on Wednesday.

?The shipment will start this year, ? he said.

Industry sources said the coal will be sold at the price of US$50 per ton in the first year, but the price will be renegotiated in the following year depending on what other utilities would pay for similar coal product.

KPC is a unit of PT Bumi Resources controlled by the Bakrie family. The firm also owns PT Arutmin Indonesia, another major coal producer in Indonesia.

Last year, KPC produced 24 million tons of coal. The firm has planned to increase its output to 30 million tons this year. (godang)