BlackGold completes construction of jetty in Riau
Tuesday, November 21 2017 - 12:48 AM WIB
SGX-listed coal company BlackGold Natural Resources Limited announced Monday the completion of its new jetty at Kuala Cenaku, in Indonesia?s Riau Province.
The company said in a statement the jetty will serve the delivery of coal produced from the group's mining concessions in Riau. Equipped with a conveyor belt and stockpiling facilities, the jetty has a loading capacity of 3.6 million tons of coal per annum and a stockpiling capacity of approximately 45,000 - 55,000 tons of coal.
?Strategically located near the group's mining concessions and situated at the Indragiri Hulu River, the jetty shall significantly improve output capacity and reduce transportation costs whilst providing better control and certainty over BlackGold's coal distribution networks,? the company said in the statement.
Following the completion of the jetty, coal is transported from the group's mining concessions to the jetty by truck, where it is loaded directly onto barges via the jetty's conveyor system for onward delivery to its customers' ports.
"We are delighted to have completed the construction of our jetty and to have commenced delivery of coal from it. It marks the completion of yet another key infrastructural asset in the group's supply chain and signifies BlackGold's commitment to consistent and timely deliveries for our customers," said Philip Cecil Rickard, CEO of the group. "Through reduced waiting times and increased loading capacities, the jetty will enable the group to lower operating costs and deliver coal in as seamless a manner as possible. Endowed with this enhancement to our coal distribution capabilities, we shall continue to work towards increasing our coal supply to PLN's PT Tenayan Project".
The PT Tenayan Project is a 2 x 110 megawatt power plant in Riau Province by Indonesia?s state-owned electricity firm PLN.
Currently already delivering to the PT Tenayan Project, the group had on 1 December 2016 signed a coal sales and purchase contract with PLN for the annual delivery of 500,000 tons of coal to the PT Tenayan Project. The Coal Sales Contract shall be for an initial term of 5 years with an option to extend the contract for three additional 5-year terms, subject to mutual agreement between the parties, BlackGold said.
Editing by Reiner Simanjuntak