Banpu joins tender to develop South Sumatra power plant<\/p>\n
Tony Hotland, The Jakarta Post, Samarinda<\/p>\n
Thailand's largest coal miner Banpu Plc. said it would invest up
\nto US$200 million to build a power plant in South Sumatra next
\nyear should it win a project to supply power tendered by state
\nelectricity company PT PLN.<\/p>\n
Banpu business development director Pongsak Thongampai said
\nthe company had already submitted a proposal for the pre-
\nqualification bid in September to PLN.<\/p>\n
\"PLN will later pick the three most-qualified bidders and will
\nnegotiate with them about the implementation of the project,\" he
\nsaid here during the weekend.<\/p>\n
Pongsak said the $200 million power plant was expected to
\ncover power supply shortages in Sumatra and possibly Java, and
\nthat Banpu would power the plant with coal from its Bara Sentosa
\nmine in South Sumatra.<\/p>\n
\"We'll use our coal reserves from this mine, which is still in
\nthe feasibility study phase, mostly because the reserves there
\nare relatively low quality and don't meet the standard for
\nexport,\" Pongsak said.<\/p>\n
Pongsak said Banpu's total coal production next year from its
\nbusiness in Indonesia was expected to jump to about 16 million
\ntons, up from this year's target of about 14.5 million tons.<\/p>\n
\"The boost will come from our new mine in Muara Lawa in East
\nKalimantan operated by PT Trubaindo. The mine will start
\nproduction later this year,\" he said.<\/p>\n
Regardless of whether it wins the power supply tender, Banpu
\nplans to spend another $300 million here next year -- the same
\ntotal as last year -- mostly on feasibility studies and further
\nconstruction.<\/p>\n
\"But we have no plans yet to make more acquisitions,\" Pongsak
\nsaid.<\/p>\n
Banpu exports most of its coal to countries like China, Japan,
\nKorea, Taiwan, India and to some European nations.<\/p>\n
The company and other coal miners are now making handsome
\nprofits from higher coal prices partly because of rising demand
\nfrom energy-hungry China and Japan amid soaring prices of oil and
\ngas.<\/p>\n
Demand for the fossil fuel, the source of about a quarter of
\nthe world's energy, rose faster last year than for any other, as
\nChina, the world's largest coal consumer, burned about a sixth
\nmore coal.<\/p>\n
\"I'm positive the high prices will extend until next year, but
\nwould probably start declining in the second semester as fuel
\nsupplies, mostly for oil, become more stable,\" Pongsak said.<\/p>\n
Aiming for a leading position in Asia, Banpu entered the
\nIndonesian coal business in 1996 as a producer and distributor of
\ncoal and later acquired mines from the now-defunct Indonesian
\nBank Restructuring Agency, which were previously owned by the
\nSalim Group.<\/p>\n
The company has three operating mines in East Kalimantan and
\nSouth Kalimantan, while three more in South Sumatra and East
\nKalimantan are yet to produce.<\/p>\n
Banpu is the third-largest coal producer here after PT Kaltim
\nPrima Coal and PT Arutmin Indonesia; both controlled by publicly
\nlisted PT Bumi Resources.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/banpu-joins-tender-to-develop-south-sumatra-power-plant-1447893297",
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"sponsor": "Okusi Associates",
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