ITM has partnered with PT Perusahaan Listrik Negara (PLN) to fully electrify in the Melak mines area by the first quarter of 2027.
This commitment was marked by signing a memorandum of understanding (MoU) between ITM management and PLN UID Kaltimra at the ITM Jakarta Office on Wednesday, April 16, 2025.
This initiative aligns with Company’s efforts to reduce Greenhouse Gas emissions in the Melak area. In addition, using PLN electricity will save operational excellence (OPEX) up to 55% in the Melak area by 2030.
ITM's President Director, Mr. Mulianto, stated that this initiative is driven by the company's commitment to reducing carbon emissions. Currently, ITM is testing battery-powered mining vehicles (EVs) in the Melak area.
However, EV charging facilities in Melak are still limited, so full electrification with PLN's power grid will increase the number of EVs and reduce the use of fossil fuels.
The company has allocated a capital expenditure investment of USD 36.4 million or approximately IDR 612 billion (assuming an exchange rate of IDR 16,830/USD) for electrification in Melak area.
"Sustainability is unavoidable. This is also in line with our strategy for responsible transition. This is a monumental project," stated Mr. Mulianto.
ITM Project Manager Mr. Johnson Har Anom explained that the total electricity demand in the Melak area is projected to increase to 34 Megawatts (MW) in the next three years from the current 7 Megawatts. This is due to the significant electricity needs for operating battery-powered vehicles (EVs), developing Bunyut Port, and expanding the crushing plant and barge loader facilities at TCM.
"Relying solely on generators would be very expensive in terms of investment costs and operational costs.Additionally, the carbon produced would be higher," said Mr. Johnson.
In line with this, ITM has communicated with PLN UID Kaltimra since early 2024. Previously, PLN also collaborated to build the power grid at the Indominco Mandiri site in Bontang.
PLN is constructing a 150 kV High Voltage Overhead Line (SUTT) from Kotabangun to Melak, that crosses the ITM Group’s hauling road in Melak. This construction is part of PLN's efforts to strengthen the power grid in East Kalimantan.
"The company's target is for the Melak power grid to be connected and electrified by Q1-2027, as this will operate alongside the expansion of Bunyut Port, crusher, and EVs. This must align with PLN's Electricity Supply Business Plan (RUPTL) targets," he added.
PLN UID Kaltimra General Manager Maria G.I Darmawan stated that according to the RUPTL PLN schedule, the transmission line construction from Kotabangun to Melak is expected to be completed by 2028. However, the construction can be accelerated due to priority needs.
This is what we will bring to PLN Central to request acceleration of transmission construction and meet ITM's needs by 2027," she said.***(sys/atr/tph)
