PTBA seeks price increase for Suralaya coal supply

JSX-listed state coal mining firm PT. Tambang Batubara Bukit Asam (PTBA) is seeking to raise 2006 coal price to Indonesia Power?s Suralaya power plant to around RP. 400,000 (US$4 per tonne from Rp. 270,000 per tonne currently due to increasing production costs, a company official said.

?Production costs is expected to be steeply increasing next year triggered by fuel price increase,? said PTA president Ismet Harmaini Friday. ?In order to be able to deliver contracted volume of 6.1 million tones next year, PTBA needs price increase.?

PTBA is contracted to deliver 6.1 MTPA of coal from its South Sumatra mine to Suralaya 3,400 MW power plant via rail and barges.

Ismet said PTBA is currently in talks with Indonesia Power, a unit of state electricity firm PLN, over 2006 coal price.

Indonesia Power president Abimanyu declined to comment on the matter. ?We are still in negotiation,? he said shortly.

Ismet said PTBA would miss around 500,000 tonnes of delivery of the contracted volume of 6.1 MT this year to Suralaya due to trouble in the railway. (alex/godang)