PLN sets up coal mining subsidiary

State-owned electricity company PT Perusahaan Listrik Negara (PLN) has formally set up a coal mining subsidiary to secure the future supply of the company?s coal-fired power plants.

PLN will inject capital of about Rp 1 trillion to the new subsidiary, which has been PT PLN Batubara, the state-owned electricity company?s chief commissioner Alhilal Hamdi said in Jakarta on Thursday.

He said that Indriartono, the general manager of PLN?s education and training division, had been named as the president director of the new subsidiary.

Alhilal said that the new company would acquire a number of coal concession areas in Kalimantan and Sumatra to ensure that PLN would no longer rely on other coal mining companies in feeding the company?s power plants.

At present PLN is constructing 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. (*)