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Monday, 19 April 10
PLN TO OPERATE COAL MINES IN BID TO FUEL POWER PLANTS


The Jakarta Globe reported that, state electricity utility PT Perusahaan Listrik Negara said on Sunday that it aimed to take over operation of small coal mining concessions throughout the archipelago to secure enough fuel for its growing number of power plants.

“We will open the tender next month as we are still preparing the details of business scheme,” said Dahlan Iskan, PLN’s president director. “The companies that win the tender will get royalties per ton, while the concessions will be operated by PLN. It is a solution to ended our dependence on coal supply from mining companies.”

PLN will set aside a minimum of Rp 5 trillion ($555 million) to pay royalties to the coal miners, Dahlan said.

The plant to operate the concessions of coal miners represents a change of tack from PLN’s earlier plan to obtain coal mining concessions itself.

In 2008, the utility set up a coal-buying subsidiary PT PLN Batubara. It was intended that Batubara would also eventually acquire coal mining concessions but it has been unable to do so. Batubara will now be tasked with operating concessions that PLN acquires.

“From our observation over the last three months, coal mining concessions all have been awarded to private companies and foreigners,” Dahlan said. “PLN could not obtain any coal concessions because we don’t have the money to bribe officials,” he said, referring to local government officials responsible for granting coal concessions.

However, Witoro Soelarno, secretary of the directorate general of coal and geothermal energy at the Energy Ministry, said PLN’s plan would violate the Mining Law, which states that mining concession holders should operate their own concessions and are not allowed to hand over the operation of their concession to other company.

“But the case with PLN may be different, because PLN will operate and will use the output itself, rather than selling it,” he said, adding that the Energy Ministry needed to review the plan.

PLN aims to put 10,000 MW of additional electricity capacity online by 2012, most of which will be generated from new coal-fired plants. However, it has been struggling to get enough fuel.

Last year, PLN spent around Rp 18 trillion on coal and it estimates that will increased to around Rp 30 trillion this year.

Small coal miners that already supply coal to PLN include PT Nusa Galih Nusantara, PT Ilthabi Bara Utama, PT Millenium Mining & Resources, PT Surya Artha Mandiri, PT Djan Resources, CV Buana Bara Lestari, PT Ecomas Jaya, PT Borneo Selatan, PT Nusa Alam Lestari, CV Bumi Sakti Prakarsa Mandiri, PT SInar Hakiki Multi, PT Hayam Wuruk, PT Nusantara Geocoal and PT Takenuda.
Source:
The Jakarta Globe ( By:Reva Sasistiya)



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