Timah has yet to obtain permit for power plant project
Friday, August 5 2016 - 06:30 AM WIB
IDX-listed tin giant PT Timah Tbk said it could not yet proceed with its planned 2x150 MW coal-fired power plant project in South Sumatra as the company has yet to be able to obtain permit from the Ministry of Energy and Mineral Resources.
Timah Corporate Secretary Agung Nugroho said on Thursday that the permit is required because the planned power plant project is not included in the 2016-2025 electricity business procurement plan of state-owned electricity firm PT PLN.
He said that while the project will certainly be delayed, the company is determined to continue efforts for the ministry to approve the project, that was initially planned to be completed in 2019.
As has been previously reported by this portal, Timah will team up with IDX-listed engineering and construction firm PT Adhi Karya Tbk, and PT Indonesia Power, a subsidiary of PLN, to develop the 2x150 MW mine mouth power plant.
The planned power plant will be located near the company?s coal mine in South Sumatra which has estimated resources of 60 million tons.
Timah aims to have a majority stake in the project, at least 51 percent.
Editing by Reiner Simanjuntak