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Tuesday, March 27, 2007

Bukit Asam to Exploit New Mine

Tuesday, 27 March, 2007 | 15:04 WIB

TEMPO Interactive, Jakarta: PT Tambang Batubara Bukit Asam will open a new coal mine to supply Bangko Tengah Steam-Based Electric Generating Plant (PLTU) at Muara Enim, South Sumatera.

Operational Director of Bukit Asam Milawarna said that the realization of the new mine opening will still have to wait for the power purchasing agreement with PT PLN.

“The reason is that the development of PLTU and the mine will be carried out together,” he told Tempo last week.

He stated that the funds for opening the new mine are estimated to be US$100 million. The funds will be sourced from the company and the consortium: PT Indika Inti Energi, China Huadian Corporation and PT PLN. “The portion was agreed, but it could not yet be revealed,” he said.

The new mine will supply PLTU Bangko Tengah with 10 million tons of coal per year. The 4x600 megawatt generator will be operated in 2010. The PLTU is aimed at meeting the growing needs for electricity in Java.

Milawarna said that the opening of the new mine could upgrade the company's purchasing value. However, he said, this is yet to be calculated. “The reason for this is that it depends much on the share ownership of each company,” he said.

DESY PAKPAHAN | WAHYUDIN FAHMI | AGOENG WIJAYA

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