Update 1: 15 coal firms pass PQ to supply 10,000 MW power plants

Adds confirmation from PLN on sixth to eight paragraphs)

As many as 15 coal mining companies have passed the pre-qualification process carried out by state electricity firm PT Perusahaan Listrik Negara (PLN) for the tender to supply coal for the planned 10,000 Megawatt (MW) power plants.

Executive director of the Indonesian Coal Miners Association (APBI) Soedjoko Tirtosoekotjo told reporters after a meeting with the House of Representatives on Thursday that the 15 companies were able to produce up to 35 million tons of coal per year to meet the demands of the power plants.

The government has launched a plan to build several coal power plants with a combined capacity of 10,000 MW across the country over the next three or four years to meet the growing demand for electricity and to cut the consumption of the increasingly-expensive oil at the nation?s power plants.

?PLN has listed the nation?s coal producers and 15 firms have passed the pre-qualification selection to supply coal to the 10,000 MW plants,? he said, adding that the list had been sent to the Ministry of Energy and Mineral Resources for verification.

He however said he did not know the names of the 15 companies.

PLN?s deputy director for primary energy Tonny Agus Marwoto confirmed that 15 companies had passed the pre-qualification process.

According to him, 26 companies came to PLN?s headquarters to pick up tender documents. Twenty of them then submitted their bids for the tender to supply coal to the 10,000 MW power plants. Yet, only 15 of them were considered to have meet requirements to move to the next stage of the tender process.

?We shall announce the pre-qualification results next week. This will be followed by the process of price submission,? Tonny said.

According to Soedjoko, one of the requirements to pass the qualification selection is that the companies must have at least 150 million tons of reserves. Also, the companies should meet the quality and infrastructure availability requirements.

He said the companies would not face difficulties in supplying the needs of the power plants as the plants only needed low-calorie coals. Each of the firms have voiced readiness to increase output by five million tons in two or three years.

Today, Indonesian coal producers put out a total of 150 million tons of coal per year, 110 million tons of which are exported. There are 50 companies now in production, while 12 firms are in construction phase. (Godang)