Semen Gresik signs coal supply agreement

Indonesian Stock Exchange-listed state cement maker PT.Semen Gresik Tbk. said on Thursday it had signed a coal supply MoU with one of Indonesian coal mining firm, Koran Tempo reported.

Vice President Director Rudiantara was quoted by the daily as saying that under the MoU, the miner, which name was not disclosed, would supply low-rank coal to Semen Gresik.

Rudiantara said the miner was one of Indonesia?s top five producers. The volume of the coal to be supplied by the producers was also not disclosed.

Semen Gresik is planning to invest US$570 million to build 410-MW power plants by 2011 in West Sumatra, Java and Sulawesi to support its expansion plan.

The company said earlier the new power plants would require 1.8 million tonnes per annum of low rank coal. (*)