PLN to complete FS on coal subsidiary

State electricity firm PT Perusahaan Listrik Negara (PLN) plans to build a coal business unit with an investment of Rp 1.6 trillion next year to secure coal supply for its proposed 10,000-MW power plant projects, Investor Daily reported on Saturday.

PLN is preparing the business plan cum feasibility study on the establishment of the subsidiary, PLN?s Deputy for Director of Investment and Share Ownership Management, Suyyud W said in Jakarta on Friday.

?The business plan and feasibility study would be completed early 2008 and later submitted to shareholder (State Minister for State-owned Enterprises) to obtain approval,? he said.

Earlier, PLN is scouting for coal miners to become joint operation (JO) partners in a bid to secure coal supplies for its operation.

Deputy Director Tonny Agus Mulyantono said On Sept 13, 2007 that PLN would conduct beauty contest to screen suitable partners. ?We?ll be conducting due diligence to review the candidates? reserves, production capacity, quality and location,? he said.

CEO Eddie Widiono said that PLN would embark on JO scheme to secure coal supply for its mega project to increase the national power generation capacity by 10,000 MW through new coal-fired power plants. PLN would need 40 million tons of coal per annum in 2009 when some of the power plants come onstream. (*)