TNB and its Indon coal unit

I was quite surprised to read the STAR today regarding TNB's coal unit in Indonesia. Yesterday night I was having a chat with some frieds at Eastin (incidentally next to the STAR's HQ at Phileo) about TNB making a RM 200 mill loss on its venture into coal mine in Indonesia and suddenly in todays newspaper its like TNB answered our question... well I don't think its accurate anyway about the whole issue. Anyways, to me it seems that someone may overheard our conversation and hurried back to his headquarters next door and responded to the issue :)

TNB to resolve soon pricing at Indon unit By YEOW POOI LING
KUALA LUMPUR: Tenaga Nasional Bhd (TNB) expects to resolve the pricing issue at its Indonesian unit TNB Coal International Ltd within a month, said chief executive officer Datuk Che Khalib Mohd Noh. Given that coal prices had increased “dramatically” in the past 12 months, TNB Coal would have to adjust its selling price to TNB accordingly, he said. Che Khalib said this after an agreement signing between the utility company and Mobile Money International Sdn Bhd yesterday.

TNB Coal, via unit PT Dasa Eka Jasatama, is involved in mining, producing and transporting coal from several sites in South Kalimantan. It supplies about 20% of TNB's coal requirement.Datuk Che Khalib Mohd Noh“When we signed the agreement, coal price was about US$30 a tonne. Now it is about US$45 per tonne, so surely there is enough margin to make between the two parties,” Che Khalib said.

Che Khalib denied reports that the Indonesian operations could incur losses of some RM226mil. “TNB would not invest in something that would make losses. There is value in the investment,” he said.