PLN on track to buy shipping firm for coal transportation
Monday, June 1 2009 - 04:27 AM WIB
PLN?s President Director Fachmi Mochtar said on the sidelines of a coal seminar in Bali that the firm was negotiating the Rp 70 billion (US$=10,200) acquisition price appraised by PriceWaterhouseCoopers (PwC)
?PLN will use Bahtera Adiguna to ship coal for power plants built under the 10,000 Megawatt (WM) program,? he said.
In September last year, the firm said it had received an approval from the government to acquire the shipping firm. The acquisition is expected to reduce PLN?s reliance on other shipping companies for shipment of coal supplies.
PLN has also set up a coal subsidiary PT PLN Batubara that will ensure coal supplies for the firm?s power plants. The firm is seeking to cooperate with coal producers, including PT Ilthabi Bara Utama.
Fahmi said PLN Batubara targeted to produce 7 million tons of coal per year in the next two of three years in cooperation with the country?s coal concession owners.
?The 7 milion tons coal accounts for 20 percent of PLN?s coal needs,? he said.
In September last year, the firm said it also planned to acquire two coal mining companies, one in Sumatra and another one in Kalimantan, in order to ensure certainty of its future coal supply
PLN is currently building 35 coal-fired plants in Java and outside Java as part of the company?s fast track program to provide additional power supply of 10,000 by 2010. (Alex)