JAKARTA (TheInsiderStories) – Indonesian coal miner, PT Bayan Resources Tbk (IDX:BYAN) signed an agreement of coal supplies with Bangladesh-China Power Company Limited (BCPCL). This agreement has 10-years tenor with US$1 billion of investment, said the management on written statement on Friday (06/24).
BCPCL is a joint venture company between North-West Power Generation Company Bangladesh Limited (NPGCL) and China National Machinery Import and Export Corporation. The first coal delivery starting June 2020 and has an extension until 10 years later.
“Bayan is so honored to become coal supplier to Payra Thermal Power Plant,” said President Director of Bayan Low Tuck Kwong.
In the agreement, the miner agreed to supply coals to Payra with capacity of 1,320 megawatts (MW). Around 23 million ton (MT) of coals with total price of $1 billion will be delivered to the plant within 10 years contract.
The plant has been built in Kalapara Upazila, Distrik Patuakhali, South Bangladesh. On March, 19 2015, a deal was signed between NWPGCL and the CMC to set up the Payra Power Plant.
The plant will consist of two units, each with a capacity of 660 MW with estimated cost is around $1.56 billion. The first unit will come into commercial operation on December 2019.
Previously, Director of Bayan Jenny Quantero said, in 2018, the company recorded net profit of $524.3 million, an increased 55.11 percent from 2017 of $338 million. This net profit derived from the revenues side, which rose to $1.67 billion from $1.06 billion in 2017.
This year, the company targets revenue around $1.8 billion with coal sales of 33-37 MT of coala. The company will allocate as much as $130 million as capital expenditure to expand and support company’s businesses.
Previously, Bayan decided to distribute dividend of $300 million or 55.31 percent of net profit of 2018.
Listed on the Indonesian Stock Exchange in 2008, Bayan is engaged in surface open cut mining of coal mines primarily located in East and South Kalimantan. It has a 90 percent interest in its largest producing asset at Tabang, which will contribute around 80% of its total production volume of up to 28 MT of coals in 2018.
Bayan’ founder Kwong is the largest shareholder with a 51.6 percent stake, Korea Electric Power Corporation (KEPCO) owned 20 percent through its subsidiaries and PT Sumber Suradaya Prima owns 10 percent. While, the management holds a 14.5 percent stake and the balance is publicly owned.
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