PTBA questions low CV coal requirement for power plant projects

IDX-listed coal mining firm PT Bukit Asam Tbk (PTBA) has questioned the move by state-owned electricity firm PT PLN to require the winning bidders for the construction of its mine-mouth power plants in South Sumatra to use low rank coal with calorific value of 3,000 kcal/per kg.

PTBA Corporate Secretary Joko Pramono was quoted by Kontan Tuesday as saying that the requirement to use the 3,000 kcal/kg in the South Sumatra 9 and 10 mine-mouth power plant projects gives the impression that PLN wants to give advantage to a certain bidder.

?PLN should have focused on which bidders can give the most effective and efficient cost,? Joko said, adding that production cost would be lower by using higher CV coal of about 4,000-4,200 kcal/kg than the 3,000 kcal/kg coal.

PLN has previously said that the requirement is part of the government?s regulation to utilize the country?s huge low rank coal reserves. (*)