PHI seeks Indonesian coal for future power plants

The concessions, located in South Kalimantan and West Sulawesi, have total estimated resources of approximately 210 million metric tonnes, according to the US-based energy and natural resources company. It said these concessions cover 10,000 hectares and have been granted operation and production licences from appropriate Indonesian governmental agencies.

According to the agreements, PHI Group will complete due diligence reviews of both concessions and prior to signing agreements to fix the final prices, terms and conditions for closing, subject to satisfactory due diligence results.

“The transactions are part of the company’s on-going programme to accumulate natural resource assets and provide long-term coal supplies to Vietnam and other Asian countries.  It is estimated that Vietnam will need to import about 24 million tonnes of coal a year by 2017,” PHI Group said.

Early this year, PHI Group signed an agreement with Vietnam’s Hoang Ngoc Joint Stock Company to build a 2,000 megawatt coal-fired power plant in southern An Giang province. In December 2011, it also signed a memorandum of understanding with domestic Sao Nam Group to build a 3,600MW coal-fired power plant in central Quang Tri province.

PHI Group chairman Henry Fahman said the foreign company would work with Hoang Ngoc Company and Sao Nam Group to provide key resources such as financing, technologies, and coal supply for these power plant projects.

Regarding the coal, PHI Group was also investigating other opportunities and will enter into letters of intent and complete the required due diligence for each transaction to make further acquisition decisions to continue for several years to come.