PLN
seeking partners to develop coal mines
Alfian, The Jakarta Post, Jakarta
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below a recent article on PLN from the Jakarta Post, which
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PLN seeking partners to develop
coal mines:
In a bid to
secure coal supplies, PLN plans to work directly with the coal concession
owners to develop untapped reserves, PLN president director Dahlan Iskan said
Sunday.
In September
2008, PLN established the subsidiary PT PLN Batubara, aiming to acquire coal
mines to ensure supply its power plants, but Dahlan Iskan said the subsidiary
had encountered difficulties in securing coal concessions.
"It was too
late for us to own coal mines ... Based on our observations over the past three
months, all coal concessions have been assigned to other local and foreign
businesses. It is also not easy for us to get mining rights [KP] because we
have no resources to bribe [officials]," Dahlan said in an emailed
statement.
In a bid to
reduce PLN's high dependence on other coal suppliers, the company thus sought
to work with coal mine owners whose concessions had not been explored yet.
"We offer direct partnerships to develop their concessions. In this
venture, PLN will provide capital expenditure and royalties to KP owners,"
Dahlan said.
"PLN will
open a tender soon. Those offering the best royalties will win the
contracts," he said. Dahlan said PLN now was preparing the specifications
for the tender, including requirements for coal volume, moisture and calorie
values.
Coal has been
one of major sources of energy for PLN's power plants, especially after the
launching of the first 10,000 MW fast-track project, whose power plants are all
fired by coal.
PLN's primary
energy director, Nur Pamudji, said 45 percent of power produced by PLN was
generated using coal. PLN would need about 30 million tons coal this year, up
from about 22 million tons a year earlier, he said.
PLN's coal
demand is expected to further increase to 38 million tons in 2011, as more
power plants under the first phase of the program will start operating.
On March 23, PLN
secured another coal supply contract for the fast-track program's power plants.
Five suppliers (PT Bina Insan Sukses Mandiri and PT Tiramana; a consortia of PT
Energi Batubara Lestari and PT Batara Batari Sinergy Nusantara; PT Anzawara
Satria; a consortia of PT Selatan Selabara and PT Fajar Visikalam, and a
consortia of CV Karya Banua and PT Daya Bambu Sejahtera) have agreed to supply
a total of 2.7 million tons coal a year for 20 years.
The coal will be
supplied for the fast-track program's power plants outside Java Island, for
example the Pangkalan Susu plant in North Sumatra, the Asam-asam plant in South
Kalimantan and the Selat Panjang plant in Riau. PLN will also need more coal
for the second phase of the 10,000 MW fast track program, implemented between
2010 and 2014.
Dahlan said the
new scheme cooperation offered by PLN would benefit coal miners as well.
"PLN will provide big market for long time period," he said.
Kind regards,
Natasha
Eenhoorn
Executive Assistant
on behalf of
Paul
G. Mazak
Managing Director
Churchill Mining
Plc
Churchill
Mining Plc
PO Box
8050, Subiaco East WA 6008
Phone
+61 (0)8 6382 3737 | Fax +61 (0)8 6382 3777
http://www.churchillmining.com