Bukit Asam to Build $840 Million Power Plant
Jakarta. State-owned coal miner Tambang Batubara Bukit Asam plans to construct a 600 megawatts power plant to supply state enterprise Aneka Tambang's ferronickel smelter in East Halmahera.
Bukit Asam and Antam are currently completing a feasibility study for the plan and expect to begin operations in 2018 with 80 MW capacity, before rising to its final capacity in the following years.
The power plant has an expected investment $720 million and $840 million, Bukit Asam's president director Milawarma on Friday.
Bukit Asam has been eyeing expansion into power generation to create stable demand for its coal, amid steep decline in global commodity prices.
Milawarma expects the plant to consume 3 million tons of coal, sourced from Bukit Asam's mine in East Kalimantan.
The collaboration will help Antam to produce 13,500 to 15,000 tons of ferronickel every year from the plant, which in turn will support the company's planned stainless steel development, Antam's president director Tedy Badrujaman said.
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