Mitsui, other foreign investors eyeing Darma Henwa?s mine-mouth power plant

IDX-listed mining contractor PT Darma Henwa Tbk mulls issuing rights shares to raise funds to finance the company?s 2009 expansion plan including the company?s 2 x 600-MW mine-mouth power plant in South Sumatera.

Speaking to reporters following the company?s extra-ordinary shareholders meeting in Jakarta on Tuesday, Darma Henwa?s President Director Kun Wibowo said that the rights issue was one of several options being considered by the firm to secure funding for expansion next year.

Kun said that the company would cooperate with several strategic partners to build the power plant. ?There are at least five investors, all foreign companies, including Japanese giant firm Mitsui Corp interested in the project,? he said.

Earlier, DH Power, a unit of Darma Henwa Tbk., said that state electricity firm PT Perusahaan Listrik Negara (PLN) had okayed its proposal to build a 2x600-MW mine-mouth power plant in Muara Enim, South Sumatra.

CEO Kaz Tanaka told Petromindo.Com that the company will build the plant and operate it as an Independent Power Producer (IPP) at its coal concession PT. Pendopo Energi Batubara.

Tanaka said following approval from PLN, both parties will sit on negotiation table to decide on electricity price and terms and conditions.

Tanaka said in earlier interview that the plant would require investment of US$1.2 billion and could be completed in 40 months since the start of the construction.

The plant will consume around 10 million tons of low-rank coal per annum. (bernard)