PLN seeking to buy coal mines, looking for partners

In a bid to secure coal supplies, PT Perusahaan Listrik Negara (PLN) plans to work directly with the coal concession owners to develop untapped reserves, The Jakarta Post reported Monday.

In September 2008, PLN established a subsidiary PT PLN Batubara, aiming to acquire coal mines to ensure supply its power plants, but PLN president director Dahlan Iskan said Sunday that the subsidiary had encountered difficulties in securing coal concessions.

?It was too late for us to own coal mines ... Based on our observations over the past three months, all coal concessions have been assigned to other local and foreign businesses. It is also not easy for us to get mining rights because we have no resources to bribe [officials],? Dahlan said in an emailed statement.

In a bid to reduce PLN?s high dependence on other coal suppliers, the company thus sought to work with coal mine owners whose concessions had not been explored yet. ?We offer direct partnerships to develop their concessions. In this venture, PLN will provide capital expenditure and royalties to KP owners,? Dahlan said.

?PLN will open a tender soon. Those offering the best royalties will win the contracts? he said. Dahlan said PLN now was preparing the specifications for the tender, including requirements for coal volume, moisture and calorie values. (*)