PLN signs contracts for 8 million tons of annual coal supplies

State owned electricity firm PT Perusahaan Listrik Negara (PLN) signed on Wednesday contracts with a number of coal producers for the supplies of coal to four power plants to be built under the government’s 10,000 MW crash program.

           

The four power plants are the 1x 660 MW Jatim 2 power plant in Paiton, Probolinggo, East Java; the 1x625 MW Banten 1 power plant in Suralaya, Banten; the 2x 316 MW Banten 2 power plant in Labuhan, Banten; and the 3x330 MW Jabar 1 power plant in Indramayu, West Java.

           

They will get coal supplies from the consortium of PT Arutmin and PT Darma Henwa; PT Baramutiara Prima; PT Titan Mining Energy; the consortium of PT Kasih Industri and PT Senamas Energindo Mulia.

           

Under the contracts, the coal producers will supply a total of 8.016 million tons of coal annually the power plants at an average CIF price of Rp 230,000 per ton for a period of 20 years,  Tonny Agus Mulyantono, PLN’s deputy director of generation and primary energy, said on the sidelines of the signing ceremony.

           

The contracts were signed by PLN’s president Eddie Widiono and the top executives of the coal mining companies.

           

Under the contracts, the Banten 1 power plant will get 900,000 tons of coal annually (or 50 percent of its needs) from PT Baramutiara Prima, 540,000 tons (30 percent ) from PT Titan Mining Energy and 360,000 tons (20 percent) from the consortium of PT Arutmin dan PT Darma Henwa.

           

The Banten 2 power plant will get 950,000 tons of coal annually (50 percent of the plant’s needs) from the consortium of PT Kasih Industri Indonesia and  PT Senamas Energindo Mulia, 570,000 tons (30 percent) from PT Baramutiara Prima, 285,000 tons (15 percent) from PT Titan Mining Energy and 95,000 tons (5 percent) from the consortium of PT Arutmin Indonesia and PT Darma Henwa.

           

The Jabar 1 power plant will get 1.43 million tons of coal annually (50 percent of the plant’s needs) from the consortium of PT Kasih Industri dan PT  Senamas Energindo Mulia; and a similar amount of supply from the consortium of PT Arutmin and Darma Henwa.

           

The Jatim 2 power plant will be supplied with 1.260 million tons of coal (70 percent of the plant’s needs) by the consortium of  PT Arutmin dan PT Darma Henwa. PLN did not explain who will supply the remaining 30 percent of the power plant’s needs.

           

During the occasion, PLN also signed a contract with PT Arutmin to supply 196,000 tons of coal to its existing 2x65Asam-Asam power plant in South Kalimantan . The supply accounts for 70 percent of the coal consumption of the power plant that is experiencing difficulties to get coal supplies due to flood problems hitting its regular suppliers. (Godang)