PTBA to put billion dollars projects on hold

State coal mining firm PT.Tambang Batubara Bukit Asam (PTBA) may have to delay its billion dollars mine-mouth power plant and new railway projects due to global financial crises.

Investor Relations head Nurtimah Tobing told Petromindo.Com on Friday that the financial crises would likely to limit access to financing.

PTBA and its partners China Huadian Corp., PLN and Truba Alam Manunggal Group are planning to develop 4 x 600-MW Banko Tengah mine-mouth power plant in Muara Enim, South Sumatra. The partnership is currently in the process of negotiating Power Purchase Agreement (PPA) with PLN, which will act as sole offtaker. The project is initially planned to become on stream in 2013.

PTBA will have 28 percent stake in the power plant and 40.5 percent stake in the mine, which would supply 10-12 million tonens of coal annually to the power plant.

PTBA also partners with Transpacific Railway Infrastructure and China Railway Engineering to develop a new mine in Muara Enim and a 307-km new railway track that would be built parallel with existing Muara Enim ?Tarahan track. The mine and the new track will have capacity of 20 MTPA.

Earlier reports said that both of the projects would cost more than US$3.5 billion.

?Most likely the projects would be delayed,? she said.

She, however, said that other smaller projects such as 2x100-MW Banjarsari mine-mouth power plant, South Sumatra, would not be delayed as it had secured financial closing with consortium of national banks.

She also said the $700 million joint project with state railway firm PT.Kereta Api Indonesia (KAI) to gradually double transportation capacity of existing railway to 20 MTPA in 2013 was still on schedule. (denny)