Economy in brief: PTBA secures coal supply contracts

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JAKARTA: State-owned coal miner PT Bukit Asam (PTBA) announced on Tuesday that it had signed two contracts worth a combined volume of 73.1 million tons.

The first contract involves three subsidiaries of fertilizer company PT Pupuk Indonesia, which are PT Pupuk Iskandar Muda Aceh, PT Pupuk Sriwijaya and PT Pupuk Kujang Cikampek, for the supply of 68.6 million metric tons of coal with a specification of 4,650 kilocalories/kilograms (kcal/kg) for 30 years. Under the agreement, PTBA’s delivery arrangements for the companies will be an average of 2.3 million metric tons per year.

The second contract involves the owner of a coal-fired power plant (PLTU) in Cilacap, PT Sumber Segara Primadaya. Under the agreement, PTBA will deliver 4.5 million metric tons of 4,900 kcal/kg coal to Sumber Segara up until Dec. 31, 2016.