paxr listed, page-9

3 months of ppas? try 2 years adrix, this has been a long wait but all is slowly coming together - the below article suggests we better get a move on for the dairi prima project. production slated end 2013

im astounded that the buyers are not having a taste yet. when your commodity goes up (ie : electricty price) so does the stock usually. not the case here.

PLN Negotiates Power Price with Dairi Prima Mineral
BY NOVAN DWI PUTRANTO & NURSEFFI DWI WAHYUNI
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JAKARTA (IFT) – State-owned power company PT PLN (Persero) is negotiating with PT Dairi Prima Mineral—subsidiary of PT Bumi Resources Minerals Tbk (BRMS) on power price. Beny Marbun, Head of Commerce Division at PLN, said the company will supply 30 megawatt (MW) of power for the operating needs of the zinc smelter that will be constructed by Dairi Prima in North Sumatra.

In the negotiation, PLN proposes price of around Rp 1,450 per kilowatt hour (kWh). Meanwhile, Dairi Prima offers price of Rp 1,100 per kWh. “No deal has been made yet,” Benny said.

He explained that the company offers price of Rp 1,450 per kWh, since the power needs of zinc processing industry is specific. With fluctuating power needs for smelter, the provision system must also be specific, and cannot only rely on power connection for the available system. “We might operate a geothermal power plant, which has expensive primary energy price,” he said.

Benny targets the price negotiation process to be completed this year, so that the company can supply power to Dairi Prima’s smelter by 2013-end. "The partnership plan will be for around 20 years,” he said.

Meanwhile, Bumi Minerals targets zinc production from the mine in Dairi (North Sumatra) to be at 115,000 tons of zinc per year, and black lead of 60,000 tons. The production from the mine will be sold to the domestic and export market.

Samin Tan, President Director of Bumi Resources Minerals, said that the company targets the Dairi mine to start producing zinc and black lead in 2014. The company will build a processing plant to process the commodity. “The fund of US$ 300 million already includes the processing plant,” he said.

Bumi Minerals owns 80 percent of Dairi Minerals’ shares. The remaining 20 percent is owned by state-owned metal mining company PT Aneka Tambang Tbk (ANTM).

Smelter Power Supply

Thamrin Sihite, Directorate General of Mineral and Coal at the Ministry of Energy and Mineral Resources, said that the directorate general has asked PLN to prepare to supply the required power for smelter development.

PLN has signed an agreement with PT Bosowa Metal Industri to supply power for the ferronickel smelter with capacity of 150 kilovolt (kV), which will be supplied from the power system in South Sulawesi.

PLN also said that the company is ready to supply power to PT Bumi Modern Sejahtera for a ferronickel smelter of 200 MW in Palopo (South Sulawesi) and Gresik (East Java).

Erwin Aksa, Chief Executive Officer of Bosowa, said that the company will build a smelter with production capacity of 10,000 tons of nickel per year and 5,000 tons of ferronickel per year in Jeneponto.

Bosowa obtained loan commitment of US$ 140 million from several state-owned banks and China’s bank to fund the project. China’s bank has committed to provide around 70 percent of the total investment of US$ 200 million for the project. “The remaining funds are sourced from internal capital,” Erwin said.

The company targets the nickel smelter project to be completed in 2013-end. Nickel and ferronickel production will be exported to China, South Korea and several nations in Europe. “We are also ready to store nickel ores from miners that do not have smelters yet,” he said. (*)