State coal miner Tambang Batubara Bukit Asam will sell to Malaysia a majority of the 1,200 megawatts of electricity produced by a new power plant in Riau, a company executive said on Friday.
Bukit Asam and state utility company PLN signed a memorandum of understanding with Malaysia’s Tenaga Nasional Berhad on Monday of this week, Bukit Asam corporate secretary Hananto Budi Laksno said in a written statement. The power plant will be located in Peranap, Indragiri Hulu district, near a coal mine the company operates.
“The MoU stipulates preparation for the establishment of three joint ventures, for developing part of the Peranap mine, to build a steam-fueled 2×600 MW power plant at the mouth of the mine and for the construction of a transmission line from Peranap to Malaysia,” Hananto said.
He said a large part of the Peranap mining venture will be developed to supply coal to the power plant, about 5 million to 6 million tons a year.
Hananto said the electricity produced by the power plant would be used to meet some domestic demand while the rest would be sent to Malaysia through an underwater transmission line.
“Bukit Asam’s Peranap area has coal resources at 792 million tons and mined reserves of 367 million tons,” he said.
In terms of quality, the majority of the coal produced in Peranap is low-calorie and because of the mine’s proximity to the power plant, the company said the arrangement would provide an economical supply of fuel for the power plant.