PLN okays DH Power mine-mouth power plant
Monday, October 27 2008 - 03:48 AM WIB
DH Power, a unit of mining contractor PT. Darma Henwa Tbk., said on Friday that state electricity firm PLN had okayed its proposal to build a 2x600-MW mine-mouth power plant in Muara Enim, South Sumatra.
CEO Kaz Tanaka told Petromindo.Com that the company will build the plant, which will operate as an Independent Power Producer (IPP), at its coal concession PT.Pendopo Energi Batubara.
Tanaka said following approval from PLN, both parties will sit on negotiation table to decide on electricity price and terms and conditions.
Tanaka said in earlier interview that the plant would require investment of US$1.2 billion and could be completed in 40 months since the start of the construction.
The plant will consume around 10 million tones of low-rank coal per annum. (bernard)