PTBA clinches coal price deal to Tarahan power plant

IDX-listed state coal miner PT.Tambang Batubara Bukit Asam (PTBA) said on Monday it had clinched a deal to sell its coal at Rp 436,500 (1US$=9,225) per ton from Rp 337,000 per ton in previous year to the 2x100-MW Tarahan coal-fired power plant in Lampung.

PTBA?s Head of Investor Relations Nurtimah Tobing told Petromindo.Com that it would supply 800,000 of coal to Tarahan power plant this year.

?We have clinched a deal with Tarahan. But (price negotiation) with the 4x65 MW Bukit Asam power plant in South Sumatra is still in progress and is expected to conclude soon,? Tobing said.

Earlier, Tobing said that PTBA is currently negotiating for 30 percent price increase with PLN?s power plants Bukit Asam 4x65MW in South Sumatra and Tarahan 2x100-MW in Lampung.

Tobing said the 2007 price for Bukit Asam power plant was Rp 257,000 per ton (CIF) with requirement of 1.1 MTPA, while 2007 price for Tarahan was Rp 337,000 per tonne (CIF) with 800,000 TPA requirement.

PTBA has 10-year contract to supply both power plants, with prices adjusted annually. (denny)