PTBA, PLN sign Rp157t worth of supply contract

IDX-listed PT Bukit Asam (PTBA) has on Tuesday March 26, 2013 signed Coal Supply Agreement with state electricity company PT Perusahaan Listrik Negara (PLN) to provide 262.6 million tons of coal with the calorific value of 4.900 kCal/kg, 4.700 kCal/kg and 4.200 kCal/kg GAR until 2030.

The value of the deal, if using today's Coal Reference Price (HBA), is estimated to reach at least Rp 157 trillion.

The coal will be used to fuel various power plants included within the 10.000 MW stage I scattered throughout Jawa, namely for PLTU Labuhan Angin, PLTU Suralaya Baru, PLTU Pelabuhan Ratu, PLTU Labuhan, PLTU Teluk Naga, PLTU Indramayu, PLTU Rembang, PLTU Pacitan and PLTU Paiton Baru.

The volume of the delivery, the company said, will increase year on year in accordance with the progress of the program, rising from 2.45 million tons in 2013 to a total of 23.4 million tons per annum in 2030.

Price will be renegotiated each year according to the HBA, with railway cost included within the cost structure, with the contract being done in FOB basis from Tarahan port.

Combined with the rest of the contracts signed 2012, PTBA will provide a total of 537.5 million tons of coal in long term contracts.

Just this month the company has signed similar contract to provide up to 51.8 million tons of coal with 5,000 kcal/kg cv for PLTU Suralaya in Merak, Banten for 10 years between January 1, 2013 and December 31, 2022 on FOB basis from Tarahan.

The company is currently waiting for the result of tender to provide up to 9 million tons of coal annually for the 1,800MW PLTU Sumsel 9 and Sumsel 10.

Editing by Er Audy Zandri