RI PRESIDENT LAUNCHED NEW POWER PLANT

Business and Investment - October 16, 2006

Jakarta Post: President Susilo Bambang Yudhoyono with a scale model of the Tanjung Jati B power plant, which he launched Saturday in Jepara, Central Java, with Energy and Mineral Resources Minister Purnomo Yusgiantoro (to the President's left) and State Minister for State Enterprises Sugiharto (far left).

Yudhoyono said he expected the coal-fired plant, which can generate up to 1,320 megawatts of electricity, would be able to fulfill the nation's increasing energy demands and avert a future power crisis.

"Some 100 million Indonesians are yet to enjoy the benefits of electricity, with our power production only at 25,0000 megawatts at present," he said.

"Many others, meanwhile, have already become dependent and more demanding in their use of electricity. That is why the government is working to build more power plants, totaling 10,000 megawatts in capacity, within the next three years."

The new plants will secure the country's whole power supply by 2009, with the Tanjung Jati B itself adding enough at present for the country's main Java-Bali grid. The government is currently conducting bidding on plants, and will provide investors with a guarantee of the plants' output by state power firm PT PLN.

Yudhoyono also asked the country to seek other energy resources to reduce its dependence on oil-based power plants, mentioning pilot solar power generation projects in Yahukimo, Papua and biomass power plants in Tomohon, North Sulawesi.

The Tanjung Jati B power plant was built jointly at a cost of US$1.6 billion by Japanese Sumitomo Corporation and PLN subsidiary Central Java Power. PLN will operate and fully own the plant after 20 years, Purnomo said.
The plant's construction was delayed due to the Asian financial crisis in the late 1990s. Its sister projects -- the Tanjung Jati A and C plants -- are still postponed. --Suherdjoko

RUSSIAN COMPANY TO BUILD FIRST RI NUCLEAR POWER PLANT

National News - October 16, 2006

Jongker Rumteh, The Jakarta Post, Gorontalo

Russian electricity company Raoues is slated to build Indonesia's first nuclear power plant. The facility will be located in Gorontalo, Sulawesi, in order to meet long-term demand for electricity there and in nearby provinces, Gorontalo Governor Fadel Muhamad said.

"The new plant is expected to start operating by the end of 2007. Gorontalo will be registered as the first province in Indonesia to enjoy nuclear electricity," Fadel said.

Fadel said the nuclear plant would be designed to have a generating capacity of 90 megawatts, which would be sold to state-owned electricity company PT PLN at a price one-third lower than that of conventional electricity.

Fadel made the remarks at a Ramadhan get-together in Gorontalo over the weekend with PLN business director Sunggu Anwar Aritonang, PT PLN Suluttenggo general manager Sigit Prakoso Suyoto, and Raoues' representative in Indonesia, Bambang Waskito.

Bambang said the power plant would be built aboard a ship floating off the shore of Gorontalo. The electricity would be transmitted to PT PLN Suluttengo.

A cooperation agreement will reportedly be signed by Fadel and Raoues representatives in Russia. "The Russian side has prepared everything. It's now waiting for Gorontalo province's response," Farino Sariowan, a Raoues project developer in Indonesia, said as quoted by Tempo Interaktif news portal.

Aritonang said the project would help address the growing need for electricity in the country.

Commenting on fears about its safety, Aritonang said while Indonesia does not have experience operating a nuclear power plant, it does have a solid base of knowledge.

"We have many experts who have studied it. Based on existing literature, nuclear power plants are safe," he said.

"We have to cooperate with other countries, though. For the first stage, we will just buy the nuclear-powered electricity from the other country."

In a related development, a member of the Gorontalo Legislative Council, Amir Piola Isa, said the council had approved a plan to establish three infantry headquarters with the aim of safeguarding the security of investments in the province.

"All the people of Gorontalo, as well as the security officers, are ready to safeguard all important installations, including the installation of the floating nuclear power plant belonging to the Russian company," he said.

GOVT ALLOCATES RP 100 BILLION IN DEALING WITH FOREST FIRES

Jakarta (ANTARA News) - The government has proposed an allocation of Rp 100 billion which will be taken from the state budget to overcome forest fires in Sumatra and Kalimantan, Coordinating Minister for People`s Welfare Aburizal Bakrie said.

"The president has requested an allocation of some Rp 100 billion to overcome the haze. I came to the House of Representatives last night and the government will propose such allocation from the national disaster handling fund," Aburizal said after meeting with President Susilo Bambang Yudhoyono at the presidential office here on Thursday.

The minister said such amount will be used among other things to lease helicopters and aircraft which will be used to carry water bombs or Hercules aircraft for cloud seeding.

"On Sunday (Oct 15) two helicopters which we have hired from Malaysia will start carrying 9,000 liters of water bombs," the minister said, adding that another hired helicopter is also expected to come from Australia.

In addition, the cloud seeding would be carried out two days before the Meteorology and Geophysics Agency decided that cloud seeding is feasible.

According to him, the first cloud seeding will be carried out in Jambi province (Sumatra) and the second in Central Kalimantan province.

The haze in Sumatra and Kalimantan which has been going on for the last two months, had caused disappointment of two neighbouring countries, Malaysia and Singapore.

Previously, Forestry Minister Malam S. Ka`ban said that the haze in the past several days was the result of smoke accumulating from forest and bush fires raging in the previous days.

He said that there were about 6,000 hotspots in Indonesia in the past weeks but now their number had dropped to 600. The decrease was thanks to the use of water bombs from helicopters.(*)

Copyright © 2006 ANTARA

October 13, 2006

NEW GOLD MINING IN KALIMANTAN

JAKARTA: Vancouver, Canada-based mining company Kalimantan Gold Corp. Ltd. has teamed up with Australian firm Oxiana Ltd. to explore and develop the Kalimantan Surya Kencana (KSK) copper-gold site in Central Kalimantan.

Under the agreement, Oxiana will receive up to two thirds of all proceeds from the exploration contract after funding a US$37.5 million bankable feasibility study of the site within two years.

Kalimantan Gold owns 75 percent of the 941-square-kilometer site, which since its initial exploration in 1996 has already shown a total of 38 copper-gold prospects. Local firm PT Pancaran Cahaya Kahayan will hold the remaining stake.

Company Information:

KALIMANTAN GOLD CORPORATION LIMITED
Address:
UNIT 1 - 15782 MARINE DRIVE
WHITE ROCK
British Columbia
Canada, V4B 1E6
Phone: +1 (604) 536-2711
Fax: +1 (604) 536-2788
Website: http://www.kalimantan.com/
Type: Public

OXIANA LIMITED
Address:
9TH FLOOR, 31 QUEEN STREET
MELBOURNE
Victoria
Australia, 3000
Phone: +61 3 8623 2200
Fax: +61 3 8623 2222
Website: http://www.oxiana.com.au/
Type: Public