Economy in brief: Hanson Energy to supply coal to PLN

Paper Edition | Page: 14

JAKARTA: PT Hanson Energy, subsidiary of publicly listed coal mining company PT Atlas Resources Tbk (ARII), will provide low-grade coal to state electricity company PT PLN, Atlas announced on Thursday.

According to an agreement signed by Hanson and PLN on Sept. 3, Hanson will deliver 429,000 tons of coal annually to PLN’s coal-fired power plant PLTU 3 in Teluk Naga, Tangerang, Banten under a 20-year contract that will last until 2031.

The power plant, with a capacity of 945 MW, will distribute the electricity to Jakarta and its surrounding areas.

Hanson operates coal mines in Ogan Komering Ulu and East Ogan Komering Ulu regencies in South Sumatra. Both areas are predicted to contain a total of 13.2 million metric tons of coal resources.

This is the second agreement Hanson has made with PLN in 13 months. In August 2011, Hanson agreed to provide 640,000 metric tons of low-rank coal per year to PLN’s steam power plant in Tarahan Baru, Lampung. That agreement lasts for 20 years.