BlackGold: Coal deliveries to two buyers delayed

By Romel S. Gurky

Petromindo

SGX-listed BlackGold Natural Resources Ltd, which owns a coal concession in Riau Province through subsidiary PT Samantaka Batubara (PT SB), said on that coal deliveries to two customers will be delayed.

The company said in a statement on Tuesday that it has been informed by PT Santosa Makmur Sejahtera Energy (SMS) and PT Soma Daya Utama (SDU), both of which are independent power plant owners with which the group has in place long-term coal sales agreements, have each informed the group that they expect delays in the completion of their respective power plants.

?Consequently, barring unforeseen circumstances, the group?s deliveries of coal to these customers will be postponed and are now expected to commence in 3Q2017 and 1Q2018 respectively,? BlackGold said in the statement.

The company said no penalties will be imposed on the group as the delays were not the fault of the group.

PT SB is a feasibility asset located in Riau province, Sumatra, comprising 15,000 hectares. Through its local subsidiary, BlackGold has the rights to the PT SB concession until 2023.

BlackGold has commenced its commercial production with PT SB mine currently in operation. In accordance with the company?s production schedule, the target production rate for PT SB is 4 million tons per annum of coal, as the asset has adequate reserves to produce at this rate for over 15 years based on the current geological database and the economic assumptions used for its design.

Editing by Reiner Simanjuntak