PT BA to supply coal to Riau power project

State-owned coal mining firm PT Tambang Batubara Bukit Asam (BA) has signed an MoU (memorandum of understanding) with the Riau province administration

and state-owned electricity firm PT Indonesia Power to supply coal to a planned 2x250 MW coal-fired power plant project, Bisnis Indonesia daily reported Monday.

The paper said that the coal need for the project would come from BA?s 54,000 ha coal site in the Pranap area of the Indragiri Hulu regency, which has a coal deposit estimated at around 1 billion tons.

The paper quoted company president Ismet Harmaini as saying that around 3 million tons of coal per year was needed for the above power project. ?This means we can fulfill the coal need of the power project for about 200 years.?

The power project will help solve Riau?s power shortage problem. The paper quoted Riau Governor Saleh Djasit as saying that while the province?s power capacity only reach 130 MW, demand during peak period could reach 155 MW.(*)