TINS, PTBA,

On Wed, 24 Oct 2007 16:32:08 -0700, Herman <[EMAIL PROTECTED]> wrote:

> NTPC mines Indonesian JV to secure coal linkage
>
>
> PSU major NTPC may enter into a power and coal joint venture (JV) with an
> Indonesian company as part of its initiative to expand global operations  
> and
> secure coal linkage for its power plants. The company is in talks with
> Indonesian mineral company PT Tambang Batubara Bukit Asam Tbk (PTBA) for
> entering into a JV where NTPC would help the company in its proposed  
> power
> foray and also jointly mine coal for use by the PSU.
>
>
> "A delegation from NTPC is expected to visit Indonesia soon to hold final
> discussions with PTBA for a possible joint venture. If the talks succeed,
> the two sides could sign a MoU for development of a thermal power plant  
> and
> a coal mine," a source in the ministry of power said.
>
>
> Senior NTPC officials have already met PTBA representatives in Indonesia  
> in
> September this year. NTPC chairman and managing director T Sankaralingam  
> has
> now written to president director of PTBA Sukrisno expressing his desire  
> to
> sign an agreement on mutually beneficial business model.
>
>
> Sources said that NTPC is interested in setting up two JV operations with
> PTBA - one for providing engineering support for developing a power plant
> and another for developing a coal mine that would allow the PSU to bring  
> a
> portion of the production for use in its power plants. PTBA has recently  
> won
> tender for constructing a power plant and has indicated that it would  
> grow
> this business.
>
> It is expected that the coal deal with PTBA would mainly be used by NTPC  
> to
> feed its proposed 500 mw power plant in Sri Lanka based on imported  
> coal. A
> portion of the coal may also be brought back to India.
>
>
> NTPC has been scouting for coal blocks in Indonesia, Australia and South
> Africa to meet its domestic demand. The demand for coal is expected to  
> shoot
> up sharply as NTPC intends to become a 50,000 mw company (from the  
> current
> 27,904 mw) by 2012.
>
>
> Last year (2006-07), NTPC used 2.43 million tonne (mt) of imported coal  
> out
> of its total requirement of 111.02 mt. The power PSU is focusing on
> Indonesia due to its proximity to the country as well as huge reserves of
> good quality thermal coal.
>
>
> PTBA is the sole state-owned coal mining company in Indonesia and owns  
> two
> of the largest coal mining sites Tanjung Enim and Ombilin. It produces  
> over
> 10 mt of coal annually, 25% of which is exported to countries such as
> Malaysia, Taiwan and Japan.
>
>
> The Economic Times - 24-Oct-07
>
>



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