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)