Arutmin delays $45m plan<\/p>\n
JAKARTA (JP): Coal producer PT Arutmin Indonesia said on
\nMonday it would postpone and possibly cancel its US$45 million
\ninvestment plan in mining operations due to the unclear status of
\na coal purchase agreement with state electricity company PT PLN.<\/p>\n
Arutmin's senior manager Noet Sutejo said the firm planned to
\ninvest $45 million in its Asam-asam coal mine, located in South
\nKalimantan, following a 1993 memorandum of understanding to
\nsupply PLN's Asam-asam power plant with its coal.<\/p>\n
According to the agreement with PLN, Noet said, Arutmin would
\nsupply PLN with up to 1.6 million tons of coal per year, for a
\nperiod of 30 years at $0.9 per Gigajoules.<\/p>\n
\"The status of the deal has become unclear following a
\npresidential decree in 1996, stipulating that all projects from
\nstate enterprises must be awarded through a tender process,\" Noet
\nwas quoted by Antara news agency as saying.<\/p>\n
PLN conducted a tender for coal supplies for its Asam-asam
\npower plant, which was funded by the World Bank. The winner was
\ncoal producer PT Jorong Barutama Greston. (03)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/arutmin-delays-45m-plan-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}