PLN mulls coal import from Australia

State electricity firm PLN considers to import Australian thermal coal as coal stock at most of Java power plants are critically low and domestic coal producers are reluctant to supply coal to the power stations, a PLN official said.

PLN Coal Procurement Head Pudji Widodo told reporters on Wednesday that PLN had sent letter of intent to buy coal from Australian coal producers grouped in Australian Coal Association.

Pudi said Australian producers were invited to supply 300,000 tonnes of coal for Suralaya, Tanjung Jati B and Paiton PEC for December 2008-March 2009 delivery.

Most of power plants in Java are currently having coal stock for less than one month consumption and some coal producers are asking for unrealistic price increase despite instruction from Director General of Mineral, Coal and Geothermal not to increase for 2008, he said.

Pudji added that a coal producer was asking for US$116 per tonne while Barlow Jonker price at that time for the same coal was $94 per tonne. ?That?s outrageous,? he said.

Pudji said all coal supply tenders conducted by PLN failed as only one or two producers participated in each tender. ?Import is the most feasible alternative to avoid power black out due to lack of coal supply,? he said.

Pudji said that PLN is willing to pay coal in line with international price.(godang)