Tanjung Enim mine

From Global Energy Monitor

The Tanjung Enim mine is a coal mine in South Sumatra, Indonesia owned by PT Bukit Asam. According to the company's 2009 annual report, the total output from the mining field was 10.7 million tonnes of which approximately 8.5 million tonnes was transported south-east to the port of Tarahan with a further 1.95 million tonnes north to Kertapati pier. In 2009 approximately 65% of the company's total coal was for the domestic market with the remainder for export. The Tanjung Enim mine accounted for approximately 95% of the company's production and sales.[1]


In recent years the company has proposed that 20 million tonnes of coal a year from the mine would be used to supply coal to the now stalled 2,400 megawatt (MW) mine-mouth Banko Tengah power plant and 1.1 million tonnes per annum for the proposed 200 MW Banjarsari power plant. In a November 2009 investor presentation Bukit Asam stated that the commissioning dates of the power plants would be 2012 and 2013 respectively.[2] However, these projects are now stalled. A small 30MW power plant to service the in-mine demands of the company is currently under construction.[3]

While the largest of the power station proposals have stalled, the company is now concentrating on upgrading railway capacity to enable increased volumes of coal which can be sold both for the domestic and export market.

In 2010 the China Railway Group (CRG) was awarded a US$4.8bn contract to build and operate a 307km coal railway line from PT Bukit Asam (PTBA)'s Tanjung Enim coal mine to Srengseng in Lampung province, Indonesia. The contract includes US$1.3bn for the construction of the railway and US$3.5bn for operating and maintaining the railway over 20 years. The project, which is scheduled to be completed in 2014, is slated to transport 27 million tons of coal per year. Business Monitor International reports that "the contract was awarded to the CRG by PT Bukit Asam Transpacific Railway, a joint venture (JV) company formed of PT Transpacific Railway Infrastructure (80%), which is owned by Indonesian tycoon Prajogo Pangestu, and PTBA (10%). The final 10% stake is owned by a Chinese railway company, although it is unclear from press reports if this stake belongs to China Railway Group or China Railway Engineering Corporation."[4]

PT Bukit Asam is also in negotiations to upgrade the existing South Sumatera Railway which runs from Tanjung Enim mine lease south east to Tarahan port and north to Kertapati Pier. According to a 2009 investor presentation, the company wants to form a joint venture with the state-owned railway operator PT KA to increase the capacity of the railway and pier to carry 22.7 million tons a year by 2014. The proposed joint venture would be 70% owned by PT KA with PT Bukit Asam holding the remaining 30%. Bukit Asam stated that it aimed to increase the capacity of the infratysructure from 11.5 million tonnes in 2010 to 14 million tonnes in 2011 and further increments each year until reaching full capacity in 2014.[2]

Power plants

In March 2005 there was a high level meeting between China Huadian Corporation (CHD) officials and the head of the state-run electricity company, PT PLN.[5] The following month CHD signed a Memorandum of Understanding with the governor of South Sumatra, Mr.Syahrial Oesman, for the development of a 4X600MW mine mouth power station in South Sumatra.[6] A few months later the formal Memorandum of Agreement was signed with the Indonesian President, Susilo Bambang Yudhoyono and Chinese vice premier Zeng Peiyan at a business luncheon. Signing the agreement were Mr. He Gong, the president of China Huadian Corporation, Mr. Eddie Widiono, the president director of Indonesian state-run electricity company PT PLN, Mr. Ismet Harmaini, president of Indonesian state-run coal company PTBA and Mr. Hendrik Tee, president of Indika. "This project is to be developed by 55% majority holding of China Huadian corporation," a CHD media release stated.[7][8] [9][10]

The power station, which is most commonly referred to as the Banko Tengah power plant, was a proposed 2,400 megawatt (MW) coal-fired power plant. The plant, which was proposed by was originally scheduled to be commissioned by the first quarter of 2011.[11] However, an October 2010 JP Morgan research report referred to the project as having stalled.[12]

Articles and resources


  1. PT Bukit Asam, "Driving Forward in a Challenging Environment", 2009 Annual Report, page 9. (Pdf)
  2. 2.0 2.1 Bukit Asam, "Corporate Presentation", November 2009, page 9.
  3. PT Bukit Asam, "Driving Forward in a Challenging Environment", 2009 Annual Report, page 56-57. (Pdf)
  4. "China Railway Secures US$4.8bn Railway Contract", Business Monitor International, March 29, 2010.
  5. China Huadian Corporation, "CHD President Meets PT PLN President Director", Media Release, March 7, 2005.
  6. China Huadian Corporation, "CHD President Meets Indonesian South Sumatra Governor", Media release, April 19, 2005.
  7. China Huadian Corporation, "The MOA on investment signed for the 4X600MW mine mouth power plant", Media Release, August 4, 2005.
  8. China Huadian Corporation, "CHD and PTBA Sign MOA on the Dedicated Coal Mine for Mine-Mouth Power Plant Project", Media Release, August 27, 2007.
  9. China Huadian Corporation, "President Cao Peixi Inspects Mine-Mouth Power Plant Project and Its Dedicated Coal Mine", Media Release, August 23, 2007.
  10. PT. Tambang Abtubara Bukit Asam, "Corporate Presentation", November 2009, page 8. (Pdf))
  11. Krensa Securities, "PT Tambang Bukit Asam", June 18, 2007, page 5.
  12. J.P. Morgan, "Tambang Batubara Bukit Asam", October 31, 2010.

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