PKN wants higher coal price for mine mouth power plant
Tuesday, March 31 2015 - 01:19 AM WIB
Coal miner PT Pesona Khatulistiwa Nusantara (PKN) is seeking for a better price of coal dedicated for mine mouth power plant projects in the country, Kontan reported on Tuesday.
The paper quoted Pesona President Director Jeffrey Mulyono as saying that the coal price set by the new pricing formula determined by the government was considered quite cheap.
Pesona is planning to supply coal starting September of this year to a mine mouth power plant developed by its parent firm.
The Directorate General of Mineral and Coal in February of this year issued a new regulation under which price of coal for mine mouth power plants is determined based on a formula of production cost plus a 25 percent margin.
Jeffrey, however, said that the margin is too low and does not fit with the firm?s economic feasibility. (*)