Tanjung Jati B may seek coal from spot market

PT.Pembangkitan Tanjung Jati B, a unit of state electricity firm PLN which runs the 2x660-MW Tanjung Jati B coal-fired power plant in Jepara, Central Java said on Thursday negotiation with coal suppliers are continuing and it might be forced to source coal from the spot market if price negotiation stalled.

Fuel Manager Chris Leo Manggala told Petromindo.Com that the bidders; PT.Berau Coal and PT.Kaltim Prima Coal (KPC)asked for around Rp.490,000 per tonnes (US$9,300), while Tanjung Jati B wanted to buy at Rp.430,000 per tonne.

Manggala said the negotiation might be concluded on mid-December this year. However, Tanjung Jati B is considering to take spot coal supply should the negotiation collapsed, he said.

KPC and Berau were the only participants in Tanjung Jati B?s latest re-tender for procurement of 1 million tonnes of low-rank coal for 2008 delivery.(denny)