By Thomas Sembiring
IDX-listed coal mining firm PT Adaro Energy Indonesia Tbk (IDX: ADRO) will supply 4-5 million tonnes of coal to the 2x1000 MW coal-fired power plant in Batang, Central Java Province, this year.
Dharma Djojonegoro, President Director of PT Adaro Power, a subsidiary of ADRO, said the Batang coal-fired power plant will consume about 7 million tonnes of coal this year.
He said that ADRO will supply the required coal from its Wara and Paringin coal mines in South Kalimantan Province. “It (the coal) will come from Wara and Paringin, which are our (ADRO’s) main coal mines,” he told Petromindo.com on Tuesday.
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The Batang power plant, which started commercial operations at the end of August of last year, is owned by PT Bhimasena Power Indonesia (BPI), a consortium comprising of PT Adaro Power (34 percent interest), Itochu (32 percent), and Electric Power Development Co., Ltd or also known as J-POWER (34 percent). BPI has signed a 25-year Power Purchase Agreement (PPA) with PLN.
Elsewhere, Dharma said that coal supply to the Batang power plant will account for about 10 percent of ADRO’s planned coal sales volume this year of about 50 million tonnes, and will contribute to the mining firm’s domestic market obligation (DMO) quota.
In addition to revenue from coal sales, ADRO is also set to start enjoying revenue from its indirect ownership in the Batang coal-fired power plant this year.
He added that PLN has already started absorbing the entire output capacity of the Batang power plant, although during the current Ramadan fasting month, the plant is running at below its nameplate capacity.
Editing by Reiner Simanjuntak
