MSW plans to build mine-mouth power plant in S. Kalimantan

PT Makmur Sejahtera Wisea (MSW) has planned to build a 2x50 megawatt mine mouth power plant in Tanjung regency, South Kalimantan province to help power shortages in the region starting 2007.

According to parent company PT Dianlia Setyamukti director Andre Mamuaya, the project is currently in feasibility study stage. ?We hope that the study will be completed in end of this month (June),? Andre told Petromindo.Com Thursday.

Andre said estimated cost for the power plant would range between US$90 million and US$100 million.

Andre also said MSW had held a preliminary talk with state electricity firm PLN and it would continue after the completion of feasibility study.

He said the power plant is to be located in boundary of two provinces in Kalimantan. ?It will enable PLN to distribute the output either to both South Kalimantan and East Kalimantan region,? Andre said.

Andre added that fuel for the power plant would be supplied from low-grade coal mined by PT Adaro Indonesia, MSW?s sister company, from its Wara coalfield.

The power plant is estimated to consume around 700,000 tons of coal annually, Andre added. (robert)