South Korea gencos eyeing coal supply from Indonesia

South Korean power generation companies are turning to Indonesia for coal supply as part of effort to reduce dependency on China, a coal-mining executive said.

?More and more South Korean power companies turn to Indonesia for coal supply, as Indonesia is considered to be able to provide stable supply compared to China, which often cut its coal export, and competitive prices,? said Kim Sung Kook, managing director of PT. Kideco Jaya Agung.

Kideco, a subsidiary of South Korean firm Sam Tan corp. had just bagged a 3-year contract with Korean Midland Power Co. (Komipo) to supply 600,000 tons annually. South Kalimantan producer PT. Arutmin Indonesia recently signed 1-year contract to supply 300,000 tons of coal to Komipo. Kalimantan coal producer Banpu Indonesia, had also recently signed 3-year contract with Korea Western Power Co.,Ltd. (Kowepo) to supply 1.680 million tons of coal.

An industry source contacted by Petromindo.Com said Indonesia would likely bag more contract to South Korea in the near future. (alex)