The Morobe Provincial Government in Papua New Guinea says it hasn't yet agreed to plans for coal development in the province.
EM TV reports discussions are underway with an unnamed foreign investor on a national government proposal to build a coal-fired power plant in Lae City.
But Morobe Governor Kelly Naru says his administration hasn't given its approval, and is conducting its own due diligence on environmental and other impacts.
A public group Nogat Coal PNG has questioned the merits of coal development in PNG when the country remains seriously concerned about climate change.
In June, the national government allocated 3 million US dollars to the Mineral Resource Authority for research into coal mining and coal seam gas industries in the country.
A number of foreign investors are exploring coal development in PNG, including Australia-based miner Mayur Resources whose portfolio covers coastal parts of within the Papuan Basin.