Semen Gresik to invest $570m to build coal-fired power plants

JSX-listed top cement producer PT. Semen Gresik(Persero) Tbk unveils on Monday US$570 million plan to build coal-fired power plants with combined output of 410-MW to support the company?s expansion and to cut electricity costs.

The company said in an advertised info in national newspapers that it would start construction of power plants in 5 locations in 2008, with completion seen in 2011.

The company said it would build a 2x65 MW power plant would be built in Tuban, East Java with investment of $170 million, a 3x35 MW plant in Indarung, West Sumatra ($146 million) and a 35-MW plant in Pangkep, South Sulawesi, all of which will supply electricity to existing plants. Semen Gresik has combined production capacity of 17MTPA

The company also plans to construct 2x35MW plant in a new location in Java ($109 million) and a new location in Sulawesi with similar capacity ($95 million) to support the new cement plants with capacity of 2.5 MTPA each that would be built in the two areas.

The company will use 1.8 million tonnes per annum of low rank coal to fuel the plants. Coal would be sourced from big-scale producers on term contracts. (denny)