Indonesian state electricity utility PT PLN will start operations of a new 2×265 MW mine-mouth coal-fired power plant located in South Kalimantan, Indonesia later this year.

This will be the country’s third mine-mouth coal-fired power plant and is estimated to cost IDR1.3trn ($143m).

PLN intends to build three other mine-mouth power plants in Sumatra at an estimated to cost of total of IDR26tn ($2.86bn).

The plants include South Sumatra 9, South Sumatra and Jambi and are aiming to achieve a total capacity of 7300 MW by 2020 in a bid to optimise coal usage in the producing regions after the three plants are operational in 2016.

The utility will begin the tender process for three mine-mouth power plants in June and the contracts will be awarded by the end of the year.

Together, the plants will require 18.9 million tons of coal each year, reports the Jakarta Post.

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