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.