PTBA signs new supply contracts

State-owned miner PT Bukit Asam Tbk recently stated it has signed coal purchase agreements amounting to 73.1 million tons with two parties, namely PT Pupuk Indonesia for the supply of 68.6 million tons of coal with 4,650 kcal/kg CV for 30 years at the average of 2.3 million tons per year, and PT Sumber Segara Primadaya, project owner of Cilacap steam power plant, to supply 4.5 million tons of coal with 4,900kcal/kg CV until December 31, 2016.

Coal for Pupuk Indonesia will be delivered to its three subsidiaries namely PT Pupuk Iskandar Muda Aceh, PT Pupuk Sriwijaya Palembang and PT Pupuk Kujang Cikampek.

"The additional coal supply is in line with the company's coal transfer capacity increase program, utilizing infrastructure provided by PT Kereta Api linking our mine site at Tanjung Enim, South Sumatra to delivery port at Tarahan, Bandar Lampung and Kertapati, Palembang," the company said in a statement, adding that the new infrastructure allows output elevation from 15 million tons per annum to 22.7 million tons per annum in 2014.

New coal railway prepared by company subsidiary PT Bukit Asam Transpacific Railway from Tanjung Enim to Lampung is expected to start operation in 2017 with the annual transfer capacity of up to 25 million tons per annum.

In addition to railway infrastructure, PTBA also expects to elevate the capacity of the Tarahan port from 13 million tons to 25 million tons per annum in 2014, in addition to increase the port's docking capacity from 80.000 DWT (dead weight tonnage) to 150,000 DWT.

Editing by Er Audy Zandri