DBS Bukit Asam - To build 3x10MW coal-fired power plant in Tanjung Enim

Bukit Asam - To build 3x10MW coal-fired power plant in Tanjung Enim
(Buy; PTBA IJ; Rp7,050; TP Rp8,359)

Bukit Asam (PTBA) announced that the company has signed an EPC (Engineering, Procurement & Construction) contract with a joint operation contractors consisting of China Overseas and Weltes Energi Nusantara, to build a 3x10MW coal-fired power plant in Tanjung Enim with a contract value of US$41.4mn.

The purpose of this project is to supply the electrical needs of PTBA’s Tanjung Enim mine operations. At present, PTBA has to purchase electricity from the State Electricity Company (PLN). Electricity supplied by the power plant is expected to reduce electrical costs by c.US$3.3mn annually. The power plant is expected to be completed in 24 months time, and will commence operation in April 2011.