Pendopo, Darma Henwa team up to build mine mouth power plant

South Sumatra miner PT Pendopo Energi Batubara is trying to commercialize its huge lignite coal reserves by planning to build a mine-mouth power plant.

The company?s senior officer Suryo told Petromindo.Com on Monday that the company has signed cooperation agreement on May 2007 with DH power to build a 2x600-MW power plant in the mine. DH Power is a unit of mining contractor and power developer PT.Darma Henwa.

Pendopo has 90 percent owned by PT Bakrie Capital Investment. Another Indonesian firm PT. Barito Putra controls the remaining shares.

Suryo said that the coal characteristic of the mine with CV value range from 4,800-5,200Kcal/kg (adb), combined with 50 percent water and low HGI had made the coal unfit for traditional consumption.

Suryo hoped that the power plant could commence operations in 2010-11.

Pendopo is also teaming up with DH Power and Japanese firm Mitsui Corp. to conduct joint pre-FS on objective to verify technical and economical viability of the coal gasification project at the mine, he said.

Pendopo Energi is a third generation Coal Contract of Work signed in 1997. (denny)