PJB negotiating with Adaro on coal supply extension

PT Pembangkitan Jawa-Bali (PJB), a subsidiry of state owned electricity firm PT Perusahaan Listrik Negara (PLN), has started negotiation with PT Adaro Indonesia on coal supply contract extension.

A source who wanted to remain anonymous told Petromindo that the existing long-term contract between PJB and Adaro expires in end of 2011. Under the contract, Adaro supplies PJB with 1.6 million tons of coal for the latter's power plant in Paiton, East Java.

PJB's annual coal needs total 3 million tons.

According to the source, PJB wants Adaro to raise its supply to at least 2 million tons per year, while Adaro wants a price hike for its coal from US$55-$60 per ton at present.

PJB expects the rest of its coal needs to be covered by other coal and traders. (Denny)