Indonesia’s Cirebon Elec in talks on coal supplies

Kalimantan Coal
JAKARTA, March 11 (Reuters) – Indonesia’s PT Cirebon Electric Power, an independent power producer, is in talks with a number of coal suppliers to seek a maximum 3 million tonnes of coal a year, a company official said on Wednesday.
The firm held two coal tenders last year failed to secure coal supply deals because it did not get approval from the state electricity firm Perusahaan Listrik Negara (PLN) due to soaring coal prices, June Yoo, manager at PT Cirebon Electric Power said.
Independent power producers must receive approval on coal tenders from PLN.
“We are almost finalising the suppliers. But we need final approval from lenders and PLN,” Yoo said, adding it was seeking coal supplies for a long-term contract of more than 15 years.
“We need a maximum of almost 3 million tonnes a year but maybe less,” she said, declining name potential coal suppliers.
Indonesian coal miner Indika Energy (INDY.JK: Quote, Profile, Research) has a 20 percent interest in Cirebon Electric, while Marubeni Corp (8002.T: Quote, Profile, Research) has a 32.5 percent stake, Korea Midland Power Co. Ltd 27.5 percent and Samtan 20 percent.
The firm is building a 660-megawatt coal-fired power plant in Cirebon, West Java,
The power plant, which is expected to start operations in 2011, may cost about $800 million and will sell electricity to PLN under a 30-year contract, Indika Energy said last year.
Southeast Asia’s biggest economy has struggled with power shortages and blackouts in recent years, but is attempting to ramp up electricity supplies through a crash programme led by the state power firm PLN to build coal-fired power plants and also through independent power producers.
(Reporting by Fitri Wulandari; Editing by Ed Davies)
Indonesia coal output seen 260 mln T in 2009-trade
NEW DELHI, March 4 (Reuters) – Indonesia’s coal output is expected to be 250 million to 260 million tonnes this year with domestic demand seen at 68 million tonnes, the head of a mining body said on Wednesday.
Jeffrey Mulyono, chairman of Indonesian Coal Mining Association, also said global coal prices were “normal” now and demand was unlikely to drop significantly.
“Of course psychologically it may seem that energy demand will decrease. But in reality it is not so much,” he said. (Reporting by C.J. Kuncheria; Editing by Ranjit Gangadharan)

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