Westcoast, Duke buy RI plant

Westcoast, Duke buy RI plant

VANCOUVER (Reuters): A consortium led by units of Westcoast Energy Inc and Duke Energy Corp has acquired a 195-megawatt power plant and transmission facilities under construction in Irian Jaya, Indonesia, Westcoast said yesterday.

The power-related assets valued at about US$360 million were purchased from P.T. Freeport Indonesia Co, the principal mining affiliate of Freeport-McMoRan Copper & Gold Inc, and Rio Tinto Plc, joint venture partners in the expansion of Freeport's mine and mill facilities, Westcoast said.

The new power facilities support an expansion of copper and gold mining and milling operations expected to be completed early this year.

Ownership in P.T. Puncakjaya Power (PJP), the Indonesian operating company established by the consortium to own and manage the power-related facilities, is Westcoast and Duke, 42.86 percent each, and PT Prasarana Nusantara Jaya, an Indonesian investor, 14.28 percent.

PJP acquired 194 megawatts of generation facilities in Irian Jaya from Freeport Indonesia in 1994 and 1995. With the recent transaction, PJP now owns and manages all electrical power facilities serving Freeport's mining operation in Irian Jaya. The power facilities total 389 megawatts of capacity and approximately US$560 million in assets.

The new power plant will have three 65-megawatt units. Construction of units one and two is scheduled to be complete in early 1998, followed by the third unit in August. Duke/Fluor Daniel, a partnership of Duke and Irvine, California- based Fluor Corp, designed and is building the power plant.