As reported, the country’s PT Perusahaan Listrik Negara (PLN) plans to set aside the coal for its reserves as its heating value is low for use in Suralaya power plant.
According to Pudji Widodo, head of coal at PLN, the coal supplied under the contract has a heating value of 4,200 kcal/kg gross as-received (GAR). But Suralaya used coal with heating value of 5,000 kcal/kg GAR.
Kasih Industri and Arutmin Indonesia, a unit of Bumi, have agreements to supply a combined 2.1 million tonnes of low-quality coal annually to the 3,400MW power plant, starting this year.
Mr Widodo told Reuters: “The board of directors has decided that Suralaya should use higher-calorie coal. So we are in talks with producers on deferring the contract and keeping it as strategic reserves.”
