PT Berau Coal Energy will increase the supply of free coal to the Lati Electric Power Plant (PLTU) in line with the plan to add a capacity of 7 megawatts (MW).

The Lati PLTU is a mine mouth power plant located in Berau Regency, East Kalimantan, with a capacity of 3 × 7 MW.

Arif Hadianto, Public Relations Manager of Berau Coal, said that every year Berau Coal supplies low rank coal for the Lati PLTU of 100 thousand tons. “Low-cost coal supply to the Lati PLTU will increase to 132 thousand tons as the PLTU increases capacity,” Arif said in Jakarta, Wednesday (29/5).

Free coal supply to the Lati PLTU is one of the Berau Coal CSR programs titled providing energy for the community. In spite of getting free coal, the management of PLTU company must pay a royalty of 13.5% to the government.

The location of the Lati PLTU is 10 kilometers from the Berau Coal mine. “The electricity is to meet the needs of the mine and surrounding communities,” Arif said.

The Lati PLTU is operated by PT Indo Pusaka Berau. The electrical energy produced by the Lati PLTU is distributed to PT PLN (Persero) at Berau Branch East Kalimantan and PT Berau Coal, one of the mining companies in Berau District.

Indo Pusaka Berau is a joint venture company established by the Indo Pusaka Berau consortium on December 23, 2002 consisting of three consortium members there are PT Indonesia Power (47%) with expertise and experience in building and operating a power plant, Berau District Government (49%) which responsible for licensing, location of land and supply of coal and PT Pusaka Jaya Baru (4%), which is the representative of Shandong Machinery I & E Group Co.

Since January 12, 2005, the official power plant operation has been carried out by Indo Pusaka Berau as a step to pioneer and start the business of the electricity generation sector in Indonesia, by building a coal-fired power plant. (RA)