PLN eyeing spot coal purchase to anticipate PTBA supply shortage

State Electricity Company PLN might seek to purchase coal in the spot market if coal supply from PT. Tambang Batubara Bukit Asam (PTBA) to PLN?s unit Suralaya 3,400-MW power plant continues to be disturbed due to railway transportation problems.

?I hope the problems between PTBA and State Railway Company KAI could be resolved soon and coal supply volume could be brought to normal, otherwise, Indonesia Power will have to issue tender for spot market buying,? said PLN president director Eddie Widiono on Tuesday. PLN owns 100 percent stake in Indonesia Power, the company that runs Suralaya power plant.

Separately, Bambang Istiedi, a director at Indonesia Power, said coal stock in Suralaya is at around 800,000 tons, which is adequate for 12-14 days consumption.

Coal supply adequacy to Suralaya is at risk after KAI cut coal transportation volume from PTBA?s Tanjung Enim mine from 20,000 tons-24,000 tons per day to 6,400 tons per day on transportation fee dispute.

The government had set coal transportation fee from Tanjung Enim to Tarahan at Rp. 37,000 (US$ = Rp. 8,900) per ton on condition that KAI transported at least 8.5 million tons of coal annually. If KAI fails to transport the minimum volume, it would receive lower fee. The railway company is demanding Rp. 45,000 per ton and less strict volume requirement condition.

PTBA relies on the state owned railway operation in transporting its coal from its Tanjung Enim mining site. Most of the company?s coal is transported by trains to a coal terminal in Tarahan, Lampung before being shipped to buyers Suralaya power plant.

PTBA is contracted to supply 6.5 million tons per annum of coal, out of Suralaya?s coal requirement of some 11 million tons annually.(godang)