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Jakarta Post

PLN secures 30 MW power supply deal from South Kalimantan iron miner

  • Norman Harsono

    The Jakarta Post

Jakarta   /   Tue, February 4, 2020   /  12:45 pm
The Jakarta Post Image
PLN business director Syamsul Huda (third left) shakes hands with SILO chief executive officer Effendy Tios (third right) in Jakarta on Jan.31. (JP/Norman Harsono) (JP/Norman Harsono)

State-owned electricity company  PLN has signed a large power supply deal with a major iron mining company in South Kalimantan as the country’s largest power producer expands operations in mineral-rich regions ahead of an incoming tide of metal smelters. Under the agreement signed in Jakarta on Jan.31, PLN will provide 30 megawatt (MW) to an iron smelter owned by PT Sebuku Iron Lateritic Ores (SILO) on Sebuku Island in Kotabaru regency. However,  PLN will have to build a nearly 40 kilometer power grid to connect the smelter to the company’s distribution network in Kotabaru, South Kalimantan. In addition to SILO, which will become PLN’s second-largest buyer in the province, the electricity company also expects to secure contracts  to provide power to other mineral ore smelters under construction in the region.  “The electricity ...