Power Plant Business Lower PTBA Production Costs

Power Plant Business Lower PTBA Production Costs

PT Tambang Bukit Asam Tbk or PTBA has broaden its competency as an energy company through power plant business. Originally, it was started by developing 3 x 10 Megawatts (MW) power plant in Tanjung Enim Mouth Mine and operated in 2013. Then followed by another 2 x 8 MW power plant on Tarahan Port and fully operated in 2014. Both power plants were originally developed to supply PTBA energy needs for its own mine operational in Tanjung Enim and Tarahan Port.

Then turned out that Tanjung Enim plant have 6 MW excess power. Since 2013 May, PTBA began to sell the excess power to PLN. Then in mid-December 2013, an excess of 4-10 MW from Tarahan Port Power Plant also sold to PLN. In PTBA 2013 Annual Report, it was mentioned that the income from the 16 MW excessive power sell can reach Rp49.05 billion per year.

The main advantage for PTBA by developing its own power plant was to have reliable electricity supply for its operation. However, PTBA managed to earn additional income from electricity sale and optimize its coal production without increasing transport capacity, as it can directly use low-calorie coal as its fuels which were not economical for sale. In addition to lower production costs in electricity costs and the operating costs structure significantly by replacing the electricity supply, PTBA also can focus it business on high-calorie coal sales.