PLN nearly completes prices negotiation with coal miners

State electricity company PT Perusahaan Listrik Negara (PLN) has nearly completed a series of negotiations on coal prices with the company?s coal suppliers which have demanded an increase in prices line with the surge in the prices in the international market.

?The negotiations have been completed except with one supplier,? PLN director for prime energy Nur Pamuji said in Jakarta on Thursday.

He said that the delay in the negotiation with the company would not affect the supply because its supply would only account for about 3 percent of PLN?s coal needs. ?We have not reached a price agreement for the supply of 1.5 million tonnes,? he said.

The negotiations have begun since October last year as suppliers demand a price correction following the surge in international prices. PLN has taken a long time to settle the difference as coal suppliers demand a price increase by average of 20 percent. The electricity company and coal producers finally agreed to use the average price in November, December and January as the reference in their coal contracts.

This year, PLN expects to receive around 50 million tonnes in coal supply from a number of coal producers that have agreed to supply to PLN for this year, including PT Jorong Barutama Greston, PT Arutmin Indonesia, PT Kaltim Prima Coal, PT Kideco Jaya Agung, PT Adaro Energy, PT Berau Coal Energy, PT Lanna Harita Indonesia and PT Insani Bara Perkasa. (bernard)