PTBA, PLN sign coal supply deal

State-owned electricity company PLN signed last week an MoU with state-controlled coal miner PTBA for a 20-year supply of low rank coal at a volume of 9 million tons per year, starting 2011.

The coal will be used to fire-up PLN?s 2,700 MW power plants, whose location will be decided later on, said PLN director of primary energy Nur Pamudji on Wednesday.

PLN will take the low rank coal at the Tarahan Port in Lampung, from which to be distributed to the designated power plants.

He said that the coal price will be determined later in the sale and purchase agreement, which is expected to be signed this year.

PTBA will start production of low rank coal at an initial volume of 800,000 tons, which will gradually increase to 9 million tons per year. (bernard)