Paiton pays IBT $16 million for breaching agreement
Friday, November 21 2003 - 02:26 AM WIB
Australian company New Hope Corp (NHC) announced on Friday its Indonesian subsidiary coal terminal operator PT. Indonesia Bulk Terminal (IBT) has received US$ 16 million from East Java-based coal-fired power plant operator PT Paiton Energy Company (PEC).
The company said the amount represented the first progress payment due under an agreement between IBT and PEC for settlement for breaches of a Coal Supply Agreement. NHC did not provide detail regarding the breach of agreement.
NHC said the fund received from PEC was used to reduce IBT?s debts to $30 million.
IBT operates 10 MTPA-capacity deep-water bulk coal handling terminal in the island of Pulau Laut, South Kalimantan. PEC operates 615 x 2 MW coal-fired power plants in Probolinggo, East Java. The plants consume about 3 million tons of coal per year, solely supplied by Indonesia?s largest coal producer PT. Adaro Indonesia, which is also sister company of IBT. (alex)