Semen Gresik secures coal for its coal-fired power plant in Sulawesi
Thursday, October 6 2011 - 12:03 PM WIB
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 is scheduled to be completed in October 2012. The electricity from the power plant will support the operation of its cement plant.
Sement Gresik spends around US$114 million to develop the power plant. The company will buy coal from a number of Indonesian coal producers.
?What is certain that we have secured coal supply. The contract is between three to five years,? said Agung.
Agung said the new cement plant, being developed in Pangkep, South Sulawesi is projected to be completed in second quarter 2012. The company invested around US$290 million for this plant.
Meanwhile, the cement plant in East Java, which is being constructed, will be completed by the end of this year or early next year. The company invested around US$304 million on this plant.
With the operation of its two new cement plants, the combined cement output of the company will increase to 23 million tons per annum from 19.5 million tons at present.
Agung further said that the company also plans to build two more cement plants in Java and Sumatera in 2013. The additional plants are needed as the existing cement plants are predicted to operate at full capacity in 2015. Once completed, Semen Gresik's annual cement capacity will further increase to 28.7 million tons.
The company's total projects capital expenditure for the 2011-2015 period is around US$2.4 billion . Fifty percent of the funds will be met by internal cash-flow.
As for this year alone, the company's capital expenditure is around Rp 5 trillion. (giok)