PLN agrees to supply power to Chinese nickel smelter

State owned electricity company PT Perusahaan Listrik Negara (PLN) has signed an agreement to supply power amounting 156 megavolt ampere (MVA) to the nickel smelter owned by PT Macrolink Nickel Development (MND) in Banteang regency, South Sulawesi.

The agreement was signed by PLN?s Director of Trade, Risk Management and Compliance Harry Jaya Pahlawan, Operation Director for Eastern Indonesia Vickner Sinaga and MND Director Xu Bin on Thursday in Banteang. Present at the signing ceremony was among others Banteang Vice Regent Muh. Yasin, PLN said in a statement.

MND is a subsidiary of Chinese firm Macro-Link International Mining Limited.

The agreement was signed following a memorandum of understanding signed by both firms last April.

PLN will deliver the power in steps, first 78 MVA from January 2016 through December 2017, then 156 MVA from January 2018. The supply volume will depend on the readiness of the smelter, PLN said.

The service provided by PLN for the smelting firm is categorized as ?Premium Platinum? service. PLN will guarantee the reliability of the supply and MND will pay a premium price of Rp 922/kWh (kilo Watt hour).

Editing by Johannes Simbolon