Resources Alam plans coal-fired power plant

IDX-listed coal mining firm PT Resources Alam Indonesia Tbk plans to build a coal-fired power plant near its concession in Kutai, East Kalimantan, Kontan reported on Thursday.

The paper quoted company Commissioner Suria Martara Tjahaja as saying that the mine mouth power plant would have a capacity of between 100 and 200 MW.

He said that feasibility study for the planned project is underway.

Resources Alam?s concession in Kutai contains coal with calorific value of 4,500 kcal/kg-5,000 kcal/kg.

Suria said that the electricity output would be sold to state-owned power firm PT PLN.

He said that Resources Alam plans to increase coal production this year by 51.42 percent to 5.3 million tons from 3.5 million tons last year. Export to China, however, will only account for about 60 percent of output, compared to 70 percent in the previous years.

The company has allocated US$2.5 million for capital expenditure this year. (*)