Semen Gresik says power plant development delayed
Tuesday, September 18 2012 - 09:55 AM WIB
PT Semen Gresik Tbk (SMGR) has informed that the development of its 2 x 35 MW power plant in Sulawesi will be completed behind schedule that is in the second quarter of 2013.
The delay was due to, among others, extreme weather condition that had impeded its construction works, particularly the installments of electrical and mechanical equipment units. ?The weather has also delayed the schedule of material and equipment transportation to the location,? SMGR Corporate Secretary Agung Wiharto said quoting the company?s report to the Indonesian Stock Exchange on Tuesday. It stated that the delay would not affect the operation of its Tonasa V plant as it had already secured a commitment from state utility PT PLN to supply its electricity need.
Previously, Semen Gresik reported that it had secured the coal supply for the power plant, which is near the location of its new cement plant in Pangkep, South Sulawesi. Head of Investor Relation PT Semen Gresik (persero) Tbk, Agung Wiharto, said Thursday that the development of the power plant with capacity of 2x35 MW was scheduled to be completed in October 2012.
Sement Gresik spends around US$114 million to develop the power plant. The company will buy coal from a number of Indonesian coal producers.
Editing by Benget Besalicto Tnb.