In order to maximize utilization of the Group’s owned coal resources and in conjunction with the Government of Indonesia program to accelerate development of 35,000 MW power generation plants in 5 years starting from 2015, PT Kutai Barat Energi (KBE) was recently established as the Group’s Independent Power Producer (IPP).

KBE is currently developing a 2 x 100 MW Mine Mouth Coal Fired Plant project located at one of the Group’s coal concession in Melak, Kutai Barat Regency, East Kalimantan Province. The location is set at Muyup Aket Village in Melak on the banks of the Mahakam river occupying an area of 150 hectares.

Fuel for this Melak Mine Mouth Power Plant project will be provided mainly from the Group’s adjacent coal mine assets namely PT Satya Mitra Persada, as well as other potential concessions within the vicinity of the Project.

This Melak Mine Mouth Power Plant project is expected to be in completion by year 2021. Power produced will be distributed to the State Owned Electricity Company (PT PLN) 150 kV East Kalimantan interconnection system under a negotiated 30 years Power Purchase Agreement.

In order to support the Group’s long term corporate strategy, Credo Group will continue to explore further on the development of energy generation potentials, particularly focusing in renewable energy.