Tuesday, May 28, 2024

Indo Tambangraya Megah seeks bank loans for solar power plant

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Gusty da Costa





Mining company PT Indo Tambangraya Megah (ITMG) is developing solar panel power stations in Melak district, West Kutai regency in East Kalimantan, Indonesia.

The company, a subsidiary of Thailand coal company Banpu Pcl, was established in 1987. It targets coal sales volume of 20.5 million tons to 21.5 million tons throughout 2022. This sales target is higher than the 2021’s sales of 20.1 million tons.

“We expect the Melak PLTS (solar power plant) to produce 2 megaWatts in 2022 as an energy source for mining operations at Melak,” Indo Tambangraya Director of Corporate Communications & Investor Relations, Yulius Gozali, said on April 22, 2022.

The company will spend around US$3.4 million for the project, which will be financed by internal cash and bank loans.

Gozali said the company was open to participation from foreign banks, including those from Europe and the United States. These banks will finance the project and other power generation projects in the future.

“There is always a possibility, but it depends on the size of the project,” he added.

China will provide the technology and equipment for the solar power plant while the remaining equipment will be procured domestically.

The Melak solar panel project is the sole investment of the company and no other investors are involved in this project.

The company subsidiary, PT Cahaya Power Indonesia, is the project contractor.

“The project is currently under construction and is expected to be operational by the end of the year,” Gozali said. 

Indo Tambangraya also operates another solar power plant in Bontang, East Kalimantan, in cooperation with PT ABB Power Grids Indonesia to supply power for off-grid mining operations at one of its concessions in East Kalimantan. The 230 MWh (megaWatt hours) power plant began operating in 2019. 

Indo Tambangraya intends to contribute to sustainable development in line with the company’s goal to become the greenest and most innovative energy company in the world. Gozali said the company would like to take advantage from the opportunities that renewable energy demand would grow and would become an essential source of power in the future.

Gusty da Costa






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