PLN to exploit coal

PT Pembangkitan Jawa Bali (PJB), a subsidiary of the state-owned electricity company, plans to team up with two domestic coal mining firms from South Kalimantan to exploit coal in a bid to ensure coal supply for its power generating unit, according to a senior executive.

PJB corporate secretary Liliek Bambang Heliyanto said that an MoU was expected to be signed soon. He declined to name the companies, but said that PJB would provide fresh capital to help finance the coal exploitation project.

Liliek said that the coal would be used as a source of energy for its Paiton power generating unit in East Java.

Liliek said that the company could not rely solely on the supply of coal from other coal mining firms including Adaro, and Multi Harapan because of sharp fluctuation in the price of the commodity.

?We understand the price (of coal) outside is very strong, so it?s just natural that we often don?t get the supply,? he said.

Liliek said that PJB needed around 3 million tons of coal per year just for the Paiton power generating unit (2x400 MW). Currently, Paiton has a 6-day coal reserves, which is still much lower than the safe level of 14-day reserves.(Amoros)