PTBA cancels coal exports to meet demand from Suralaya power plant
Tuesday, May 8 2001 - 04:30 AM WIB
State coal miner PT Tambang Batubara Bukit Asam (PT BA) has canceled some of its coal exports to meet its commitment to supplying 485,000 tons of coal per month to coal-powered power plant in Suralaya, West Java, in an effort to prevent electricity blackouts in some parts of Java and Bali.
The head of PT BA business development, Tiendas Mangeka, said that his company had canceled twice the shipment of coal for exports, risking penalties imposed by the waiting vessels at Tarakan port in Bandar Lampung.
"Because of the cancellation of exports, PTBA has to pay the fine, and of course this happening could lower consumers' confidence on us," Tiendas said.
Declining coal supplies from PT BA to Suralaya has caused Suralaya power plant to stop the operation of some of its power generators, causing a reduction in power supplies to the Java Bali system. This has especially affected electricity supplies for West Java and southern part of Central Java.
Tiendas said that his company had demanded a higher price for its coal it supplied to Suralaya, from Rp 190,000 per ton now to Rp 210,000 per ton.
"This price is still under negotiation," he said.
He contended that coal prices at the international market currently stand at around US$23 per ton, freight on board. That price is a benchmark price for coal in Australia and Japan. (*)