KTI and Titan to build power plant in East Kalimantan

PT Kutai Timur Investama (KTI), an investment firm owned by East Kalimantan?s Kutai Timur regency administration, will team up with Titan business group to build a coal-fired power plant in the regency, Bisnis Indonesia reported on Tuesday.

KTI president director Anung Nugroho said on Monday that the two companies would spend up to US$75 million to build the power plant, which would have a capacity of 2 x 25 megawatt.

The new power plant is expected to begin commercial operation in 2010. KTI and Titan will soon establish a joint venture to operate the power plant with share ownership composition of 20 percent and 80 percent, respectively.

Anung said that KTI would sell its five percent stake in PT Kaltim Prima Coal (KPC) to PT Minang Jordanindo (MJ) to raise funds for the power plant constriction and the company?s other business expansion.

According to him, MJ is currently conducting a due diligence audit on KTI?s subsidiary PT Kutai Timur Energi as part of the acquisition of the five percent stake in KPC.

Anung said that in addition to the construction of the power plant, KTI?s expansion projects will include acquisition of several coal concession areas, the construction of a coal railway track and a coal terminal. (*)