Paiton finds difficulties in getting coal supply

Private power company PT Paiton Energy, which operates a combined 2,000 MW coal-fired power plant in East Java, is finding difficulties in getting coal supply that meets the requirement of its power plant, Kontan reported on Tuesday.

The paper quoted Paiton Finance Director Syakib Bafagih as saying that the power plant requires coal with CV of 5,200 kcal/kg. ?In the past, it (the specific coal) was plentiful, now it?s difficult to get,? he said.

The country?s coal production is dominated by low-rank coal with CV of 4,300-4,700 kcal/kg, which are below the required CV of the company?s power plants.

Syakib said that switching to lower rank coal will require the company to change the plants? boilers specifications, which would be costly.

Coal miners PT Adaro Energy and PT Kideco Jaya Agung have been the main suppliers coal to Paiton, providing between 8-9 million tons of coal per year.

Syakib, however, did not say the extent of the coal supply problem and how it would affect the operation of the Paiton power plant. (*)