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Bukit Asam and China Huadian Win $1.6 Billion Power Project

PT Tambang Batubara Bukit Asam and China Huadian Corp. won a contract to build a coal-fired power plant costing $1.6 billion in South Sumatra.

The companies will jointly build the plant in Tanjung Enim, which has power generation capacity of 1,240 megawatts from two units, at the end of 2012, Bukit Asam said in a statement to the stock exchange today. The Banko Tengah power plant is scheduled to start operation in 2016, Bukit Asam said.

Bukit Asam will supply 5.4 million tons a year of coal with gross calorific value of 4,200 kilocalories per kilogram to Banko Tengah facility, the company said.

China Huadian, which will finance the project, has a 55 percent share in the project, and Bukit Asam owns the remaining 45 percent stake, it said.

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