Churchill Mining’s 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 .

ICD is developing the East Kutai Coal Project in East Kalimantan which has a JORC resource of 1.4 billion tonnes of thermal coal.

CEP, an independent power producer, has confirmed that after evaluating its coal specification, ICD has been registered on its list of qualified coal suppliers for the power plant which is under construction in Cirebon , West Java .

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.

The 660 megawatt coal-fired power plant, which is due to start operations in 2011, will require up to 3 million tonnes of coal/year. Japan ’s Marubeni Corporation holds a 32.5% stake in CEP.

Under a 30 year contract, the Cirebon power plant will supply electricity to the state electricity firm Perusahaan Listrik Negara.

Churchill Mining’s CEO Paul Mazak says, “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.

“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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