PLN hopes to also secure more contracts to provide power supply to other mineral ore smelters under construction in South Kalimantan
tate-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 supply in South Kalimantan is sufficient. It’s just a matter of how we can extend our electricity grid to these smelters, mostly located far from our grid,” PLN business director Syamsul Huda said following the signing of the agreement, adding that the company had seven other agreements to be signed this year.
He, however, noted that PLN’s grid would only enter Sebuku Island, which is separated from the regency’s capital by a strait, in around 10 months . The company will soon build a high-voltage power grid to connect the smelter with its power distribution network in Kotabaru, which is 40-km from the island.
PLN is expanding its electricity network in mineral-rich regions, including Kalimantan and Sulawesi, as the company expects to provide power supply to new smelters in the regions, which will need power supply of about 4,000 MW to accommodate the smelters.
Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.
Thank you for sharing your thoughts. We appreciate your feedback.