JAKARTA (Yosefadi) – PT Adaro Energy Tbk (ADRO) and China Shenhua Overseas Development and Investment Co Ltd (Shenhua Overseas) have signed a further memorandum of understanding regarding the coal and power joint project development.
Both parties agreed to develop a joint project on coal and power plants in East Kalimantan. The parties intend to establish a joint venture in Indonesia to develop mine mouth coal fired power plant, which will likely be owned 51% by Shenhua Overseas and 49% by Adaro Power, unit of ADRO.
In the first stage, Shenhua Overseas and Adaro Power agree to mine sufficient coal for, and to develop, a 2×300 megawatts (MW) power plant and power transmission facilities.
The electricity shall be provided by integrated transmission to the East-South-Southeast Kalimantan grid.
Shenhua Overseas intends to initially acquire a minority equity interest in a subsidiary of Bhakti Energi Persada (BEP) for the development of a coal mine and for the purpose of supplying the fuel to the power project.