PTBA to soon start construction of two minemouth power plants

State-owned coal company PT Tambang Batubara Bukit Asam (PTBA) will soon realize the company?s plan to build two minemouth coal-fired power plants in Banjarsari, Lahat, South Sumatra and in Celenti, Perenap, Indragili Hilir, Riau, Suara Pembaruan reported on Monday.

PTBA?s president director Ismet Harmaini said in Palembang on Monday that the construction of the two power plants which would use coal from the company?s nearby mining sites was part of the program to boost coal production.

The power plant which would be built in Lahat is expected to use 1.2 million tons of coal a year, while the planned power plant in Riau will used 3.5 million tons of coal a year. The Lahat plant will have a generating capacity of 2 x 100 MW while the Riau power plant will have a capacity of 2 x 250 MW.

Ismet acknowledged that the lack of transportation facilities had become the main obstacle in the coal producer?s plan to further boost production capacities. At present the company, which produces about 10 million tons a year, relies on state owned railway operator PT Kereta Api Indonesia in transporting its coal both to local and overseas buyers. (*)