SEB to get 3 licences to explore coal in Balingian

KUCHING: The state government wi l l award three General Prospecting Licences ( GPLs) to Sarawak Energy Bhd ( SEB) for coal exploration in Balingian.

Chief Minister Datuk Patinggi Tan Sri Adenan Satem, who announced this during SEB’s Hari Raya gathering yesterday, said he would issue the GPLs when he returned from Kuala Lumpur and Brunei next week.

In a press conference later, Second Minister of Resource Planning and Environment Datuk Amar Awang Tengah Ali Hassan explained that the GPLs would be for two years, and could be renewed for another two years.

“The coal exploration will ensure reliability of supply to the new 600 megawatt (MW) Balingian Coal-fired Power Plant, which is under construction and due for completion in 2017/2018.”

Awang Tengah said the areas involved was around the proposed plant and spanned more than 40,000 hectares.

“Balingian Coal- fired Plant is a mine- mouth plant, built at a strategically located area to reduce logistics costs for transporting the coal.”

He said the plant would require 3.2 million tonnes of coal per year – translating into almost 100 million tonnes for the next 30 years. If SEB were successful in prospecting for coal, the utility company could later apply for mining lease in the said area, he added. When asked if the mining lease would be awarded to SEB, he replied: “Of course. They are given these GPLs. If they are confident that there is enough coal reserve, then they will need to apply for mining lease. Defi nitely they will be given priority for the mining lease.” He said besides SEB, other companies issued with GPLs and Mining Leases at adjacent areas included Sarawak Coal Resources.

Awang Tengah said t he Balingian coal-fired plant was the first of its kind in the country to be built with Circulating Fluidised Bed ( CFB) boiler – the latest in clean technology. This would help reduce the plant’s environmental footprint.

He said the plant would facilitate the power generation growth of SEB, which currently comprises 75 per cent hydro and 25 per cent thermal, to meet the demands of the Sarawak Corridor of Renewable Energy ( SCORE) and domestic customers in the state. By 2020, Awang Tengah said the power generation mix was projected to be 60 per cent hydro, 20 per cent coal and 20 per cent gas.