Toba Bara eyes power plant project worth $260m

IDX-listed coal mining firm PT Toba Bara Sejahtera Tbk plans to diversify into power plant business, aiming to build a coal-fired power plant with capacity of up to 200 MW and estimated investment of US$200 million-$260 million, Bisnis Indonesia reported on Friday.

The paper quoted Toba Bara President Director Justarina Naiborhu as saying the entry into the power plant business is expected to begin this year.

?We have been exploring things. It (the diversification plan) will be announced soon. We will enter the power plant (business) under 200 MW gradually,? he said.

He explained that the diversification into the power plant business forms part of efforts to help ensure market for the company?s coal output, amid the lingering global coal market downturn.

Toba Bara Finance Director Pandu Sjharir said that the company has obtained funding commitment from a state-owned bank to help finance power plant project. Of the planned investment, about 20-30 percent will come from equity, while the remainder to be financed via bank loans including from foreign banks.

The company currently has four operating subsidiaries, three in coal mining namely PT Adimitra Baratama Nusantara (ABN), PT Indomining (IM), PT Trisensa Mineral Utama (TMU) located in East Kalimantan. Toba Bara has set coal production target of 5-7 million tons this year. (*)