Jakarta (TheInsiderStories) – State-owned mining company PT Bukit Asam Tbk (IDX:PTBA) through PT Huadian Bukit Asam Power, a joint venture company with China Huadian Hongkong Company Ltd, has signed a Power Purchase Agreement (PPA) with state-owned electricity company PT Perusahaan Listrik Negara on Thursday (19/10). The steam-fueled mine mouth power plant South Sumatra 8 has capacity of 2 x 620 MW.
With this signing, the electricity supply from South Sumatra 8 will be re-directed into the Sumatra grid using extra high voltage 500 kilovolt transmission distribution. While the initial plan was to direct power to Java through a High Voltage Direct Current, the government now feels the volume supplied to Java is already sufficient.
Bukit Asam expects to start construction the power plant in second half 2018, with construction stretching 42 months for Unit I and 45 months for Unit II. Commercial Open Date for Unit I and Unit II is expected in 2021 and 2022, respectively.
Huadian Bukit Asam Power will also build a transmission route from South Sumatra 8 to Muara Enim Main transmission, 45 km in length. The Company expects to invest US$1.7 billion for the project.
In the third quarter (Q3) of this year, PTBA recorded Rp2.63 trillion net profit, up 250 per cent from the Rp1.05 trillion marked on an annual basis. This achievement was supported by increasing production volume, transportation, sales, efficiency as well as optimization of average selling price of the Company’s coal.
The Company booked Rp13.22 trillion in sales in 3Q, rising 31.7 per cent from the Rp10.04 trillion projected on an annual basis, thanks to the Company’s strategy for selling Low to Medium Range Calorie coal in the better market price environment.
In terms of volume, the Company sold 17.24 million tons during the period, up 13.8 per cent from 15.14 million tons on an annual basis. Domestic sales rose 20 per cent to 1.83 million tons. Meanwhile average selling price rose 15 per cent over the period, in accordance with improvement of Indonesia Coal Index and referral coal price.
Company aims to sell 23.17 million ton coal this year, with composition 15 million (58 per cent) ton for domestic market and the rest for export market including China, India, Cambodia and Vietnam.
Writing by Yosi Winosa, Email: email@example.com