PTBA prepares two mines to supply coal to Inalum

IDX-listed coal miner PT Bukit Asam Tbk (PTBA) has prepared two mines in South Sumatra and Riau provinces to supply coal for a planned 3x350 MW power plant being developed by state-owned aluminum producer PT Indonesia Asahan Aluminium (Inalum) in North Sumatra.

Kontan quoted PTBA Corporate Secretary Joko Pramono as saying that the type of coal to be used in the power plant project would depend on the results of the ongoing feasibility study. ?Next year, once the feasibility study has been completed, we can determine the calorific value of the coal to be used,? he said.

PTBA has a combined 90,832 hectares of concessions areas scattered in four provinces, must of which are located in South Sumatra (about 66,414 ha). Coal at its concession in Riau has calorific value of 3,000 kcal/kg, while in South Sumatra has a CV of 4,100 kcal/kg.

Joko said that if the feasibility study concludes that the project will require low CV coal from the Riau mine, PTBA will supply about 5.5 million tons of coal per year to the Inalum power plant. If the medium-level CV is required, PTBA will supply about 4 million tons of coal per year to be shipped from South Sumatra.

Inalum, teaming up with PTBA, plans to build a 3x350 MW of coal-fired power plant in Kuala Tanjung, North Sumatra, to support its plan to boost production capacity to 500,000 tons per year in 2020 from the current 265,000 tons per annum. The power plant project is expected to start operation in 2020.

PTBA is also engaged in a number of other coal-fired power plant projects including a 2x110 MW project in Lahat, South Sumatra (expected to start operation early 2015) that would require coal supply of 1-1.5 million tons of coal per year; Pranap 2x600 MW in Riau (operation in 2019, requires 8.4 million tons of coal per year); and the South Sumatra-8 2x620 MW (operation in 2018, requires 5.4 million tons of coal per year). (*)