Tarahan power plant pays higher coal price in 2012

By Edgar Subroto

State electricity firm PLN's unit Tarahan 2x100 MW power plant in Lampung province has agreed to pay higher coal price for 2012 period to fire its power plant from sate owned coal miner PT Bukit Asam (Persero) Tbk (PTBA)

Tarahan power plant has agreed to pay Rp732,576 per ton, slightly higher compared to last year?s price of Rp729,325 per ton. The agreement has been reached since April this year.

Under April 2007 contract, PTBA agreed to supply about 17.1 million tons of coal until 31 Dec 2031 to Tarahan power plant, with price to be renegotiated every year. For the volume, PTBA supplies about 700,000 tons per year to the power plant.

According to the official, for next year period, both parties are still in negotiation in terms of price, ?which usually will be concluded in March-April,? the source said.

Editing by Er Audy Zandri