Kideco signs coal deal

Kideco signs coal deal

JAKARTA (JP): PT Kideco Jaya Agung, a coal mining firm based
in East Kalimantan, secured a 30-year contract here yesterday to
supply 1.8 million tons of coal per year to PT Jawa Power's
Paiton power project.

Kideco, wholly owned by South Korea's Samchully business
group, said in a statement here yesterday it would expand its
annual coal production from around 2.5 million tons at present to
around six million tons by 1999 to serve Jawa Power.

The company said that its coal production is now chiefly sold
to electricity generators in South Korea.

Jawa Power -- 50 percent owned by Siemens of Germany, 35
percent by PowerGen of Britain and 15 percent by Bumipertiwi
Tatapradipta, a subsidiary of the Bimantara group -- will
construct a 1,220 megawatt power station at Paiton, East Java.
(hen)