PT Berau Coal gets $1.5 million contract

PT Berau Coal gets $1.5 million contract

JAKARTA (JP): PT Berau Coal has secured a 30-year contract
worth US$1.5 billion to supply two million tons of coal per year
to PT Jawa Power's Paiton power plant in East Java, the coal
mining company said in a statement on Tuesday.

Berau, controlled by United Tractor, a member of the Astra
International Group, and Nissho Iwai of Japan, said the coal will
be supplied from its Lati and Binungan mines in East Kalimantan.

Berau, which currently produces one million tons at its Lati
mine, will expand its mining capacity to five million tons per
year in 1999 by developing a new mine at Binungan near Lati.

Jawa Power, which is 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 plant at Paiton, East Java.

Jawa Power, the second private company to build a coal-fired
power station at Paiton, has concluded a 30-year electricity
power sales contract with the State Electricity Company
(PLN).

The Jawa Power plant is scheduled to come on stream in 1999
and will be operated by the private company for 30 years, after
which the power station will be transferred to PLN.

PT Paiton Energy Company, a joint venture of Mission Energy of
the United States, Mitsui & Co of Japan, General Electric Capital
Corp. of the United States and PT Batu Hitam Perkasa of
Indonesia, is building another plant with a generation capacity
of 1,230 megawatts at Paiton at a cost of $2.5 billion. (04)