Churchill Mining (AIM: CHL) is pleased to announce its fully owned subsidiary, PT Indonesia Coal Development (ICD), has been selected as a prospective thermal coal supplier to Indonesia’s PT Cirebon Electric Power (CEP), which is building a 660 megawatt power plant in West Java.
Churchill Mining, through its Indonesian incorporated subsidiary ICD is developing the East Kutai Coal Project (“EKCP”) in East Kalimantan which has a JORC resource of 1.4 billion tonnes of thermal coal.
CEP has confirmed in a letter to PT Indonesia Coal Development that after evaluating its coal specification, ICD has been registered on its list of qualified coal suppliers for its power plant, currently under construction in Cirebon, West Java.
PT Cirebon Electric Power is an independent power producer which is building a 660 megawatt coal fired power plant, due to start operations in 2011. Japan’s Marubeni Corporation holds a 32.5% stake in CEP.
CEP has previously indicated that the power plant will require up to 3 million tons of coal per year.
The registration entitles ICD to bid to supply coal to the power plant when it is required. In order to remain qualified to bid for the supply contract, ICD will provide data on an ongoing basis.
Under a 30 year contract, the Cirebon power plant will supply electricity to the state electricity firm Perusahaan Listrik Negara (PLN).
Churchill Mining CEO, Paul Mazak commented:
“It is a significant milestone for Churchill to have been selected as a potential supplier of coal to PT Cirebon Electric Power’s West Java power plant when it is commissioned in 2011. With such a large and growing resource at our East Kutai Coal Project, Churchill Mining is more than capable of meeting the considerable demand that the plant requires. This option is one of many that Churchill Mining is exploring as it moves forward to bringing the project into production.”
Churchill Mining, through its Indonesian incorporated subsidiary ICD is developing the East Kutai Coal Project (“EKCP”) in East Kalimantan which has a JORC resource of 1.4 billion tonnes of thermal coal.
CEP has confirmed in a letter to PT Indonesia Coal Development that after evaluating its coal specification, ICD has been registered on its list of qualified coal suppliers for its power plant, currently under construction in Cirebon, West Java.
PT Cirebon Electric Power is an independent power producer which is building a 660 megawatt coal fired power plant, due to start operations in 2011. Japan’s Marubeni Corporation holds a 32.5% stake in CEP.
CEP has previously indicated that the power plant will require up to 3 million tons of coal per year.
The registration entitles ICD to bid to supply coal to the power plant when it is required. In order to remain qualified to bid for the supply contract, ICD will provide data on an ongoing basis.
Under a 30 year contract, the Cirebon power plant will supply electricity to the state electricity firm Perusahaan Listrik Negara (PLN).
Churchill Mining CEO, Paul Mazak commented:
“It is a significant milestone for Churchill to have been selected as a potential supplier of coal to PT Cirebon Electric Power’s West Java power plant when it is commissioned in 2011. With such a large and growing resource at our East Kutai Coal Project, Churchill Mining is more than capable of meeting the considerable demand that the plant requires. This option is one of many that Churchill Mining is exploring as it moves forward to bringing the project into production.”
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