PTBA, Indonesia Power inch closer on coal price deal
Thursday, January 26 2012 - 02:07 AM WIB
The state-owned coal producer PT Bukit Asam Tbk (PTBA) said that it had inched closer to sign agreement on price of coal with PT Indonesia Power, a subsidiary of state electricity firm PT PLN.
President Director of PT Bukit Asam, Milwarma said that the agreement on the coal price was expected to be signed by the end of this month. "We are ready to sign the deal on coal price with PT Indonesia Power. Hopefully, the signing of agreement could be realized this month," he told Petromindo.com on Thursday. Milawarma however declined to elaborate on the agreed coal price.
Bukit Asam is the country's only state-owned coal producer with four mining sites in Tanjung Enim in Palembang, Ombilin in Padang, Peranap in Pekan Baru and the subsidiary of International Prima Coal (IPC) in Samarinda. The company has a total mineable coal reserve of about 2 billion tons and a predicted deposit of 7 billion tons.
PLN has stated that it needed some 56.6 million tons of coal to fuel its coal-fired power plants in 2012 of which some 23 percent of the coal should be of calorific value of 4,200 kcal/kg, 26.8 percent of 5,100 kcal/kg and the remaining of 6,100 kcal/kg.
Editing by Adianto P. Simamora