PLN hopes to realize coal mine acquisition this year
Wednesday, June 14 2017 - 01:18 AM WIB
Petromindo|Thomas
State-owned electricity firm PT PLN said it hoped to be able to realize its plan to acquire coal mines in Kalimantan this year in a bid to help secure coal supply for its coal-fired power plants.
?God Willing, this year (the acquisition will be realized,)? said PLN President Director Sofyan Basir on Tuesday.
He said that there are many mining firms which have offered their coal mines to PLN for acquisition. He declined to disclose the firms. He added that the targeted coal mines must meet a number of criteria including sufficient reserves, and coal calorific value suitable for PLN power plants.
PLN?s coal requirement this year is estimated at 67 million tons. In the 2019-2020 period, the company?s annual coal consumption is estimated to rise to 80 million-100 million tons.
Meanwhile, Vice President Director of independent power producer PT Adaro Power, a subsidiary of IDX-listed coal giant PT Adaro Energy Tbk, said the company has been engaged in initial talks with PLN for possible acquisition of Adaro?s coal mines in Kalimantan and Sumatra.
He said that the proposed acquisition forms part of possible partnership with PLN subsidiaries in developing planned mine mouth power plant projects in Kalimantan and Sumatra.
As has been previously reported, PLN plans to procure 16 mine mouth coal-fired power plant projects in Kalimantan (7 projects) and Sumatra (9 projects) with combined capacity of 6,990 MW as stated under the PLN 2017-2026 electricity procurement business plan (or RUPTL). Some of the projects will be directly assigned to PLN subsidiaries including PT Indonesia Power and PT Pembangkitan Jawa Bali, which are allowed to partner with private companies or independent power producers.
PLN Coal Division Head, Harlen to Petromindo.com last month that the company had been engaged in talks with three coal firms operating coal mines in Sumatra and Kalimantan for possible acquisition. He said that PLN was looking to acquire up to 51 percent shares in the target company. (*)