Sunday, December 19, 2010

Indominco negotiating coal price with TNB Malaysia

Malaysian-state utility Tenaga Nasioanl Bhd. Is negotiating price with East Kalimantan coal miner PT Indominco Mandiri, a coal unit of Indonesian listed firm PT Indotambang Raya Megah (ITM), for a supply of 1 million tonnes of coal in 2011.

Tenaga has 5-year contract to get 1 million tonnes of coal per annum from Indominco, which started in 2007, an industry source told Petromindo.Com last week.

“Every year, we are re-negotiating the price but not the volume , “ the source said. This year, Tenaga bought Indominco coal at the average price of around US$90-94 per tonne with calorific value of 6,000 kcal/kg (ADB). 

Next year’s price will be more or less similar than this year’s, the source said, adding the negotiation is expected to be completed before year-end.

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