PTBA will build steam power plant in South Sumatra

Tanjung Enim, South Sumatra-based coal producer PT Tambang Batubara Bukit Asam (PTBA) plans to build a steam power plant near its coal mining concession in Banjarsari to help cope with the acute shortage of the power supply in the province.

PTBA?s finance director Abdul Aziz Nazori said in Jakarta on Monday that the coal producer would cooperate with two other companies to build the power plant which was expected to start its operation in 2005.

"Besides PTBA, state owned Indonesia Power and a private company would be involved in the construction of the new power plant," he added.

He said that PTBA would supply at least 1 million tons of coal a year to feed the power plant, which would be located near its coal mining location.

Aziz said that PTBA would provide about 24 percent of the total cost for the construction of the plant, Indonesia Power about 51 percent and the remaining 25 percent from the private company. But he was reluctant to unveil the total value of the project.

According to Aziz, PTBA is still waiting for the approval from the office of the State Minister for Supervision of State Enterprises to begin the project. (*)