PTBA to sign additional 14.5MTPA coal supply deal with PLN

Indonesia-exchange listed coal miner PT Tambang Batubara Bukit Asam (PTBA) will sign an additional 14.5 million tons per annum (MTPA) of coal supply contract with state electricity firm PT Perusahaan Listrik Negara (PLN) on top of the current 8.1 MTPA supply contract.

PTBA president director Sukrisno said on Thursday that the signing of the contract is expected to take place next week. The 20-year contract will start this year with small volume, with the coal selling price to be renegotiated annually. The contracted volume of 14.5 MTPA will be delivered after PTBA's partners would complete two railway projects and port in Sumatra that would boost PTBA's production capacity to 85MTPA in 2018.

?With the additional contract, PTBA will supply a total 22.6 MTPA of coal to PLN. The coal supply will depend on PLN?s request. We?re ready to supply coal anytime,? he said.

He also said that there is a possibility to further expand the volume of contract in the future.

Currently, PTBA supplies 8.1MTPA coal to three PLN?s power plants including Suralaya in Banten, Bukit Asam in South Sumatra and Tarahan in Lampung. (bernard)