BlackGold may become exclusive coal supplier for Riau-1 power plant project
Saturday, October 28 2017 - 04:18 AM WIB
SGX-listed coal firm BlackGold Natural Resources Limited said that its coal subsidiary PT Samantaka Batubara (PTSB) has the potential to become the exclusive coal supplier for a proposed coal-fired power plant project, called Riau-1 project, in Riau Province.
BlackGold said in a recent presentation material that the potential coal supply volume from PTSB concession in Riau Province to the proposed 2x300 MW power plant is approximately 3.6 million tons per year, which translates to around 108 million tons of coal over anticipated 30-year power purchase agreement (PPA) with state-owned electricity firm PT PLN.
The company added that it would also be entitled to part of the revenue from sale of electricity from the power plant to PLN.
BlackGold announced in September it had entered into a heads of agreement to form a new consortium to develop and operate the power plant project. The consortium includes China Huadian Engineering Co., Ltd (CHEC); PT Samantaka Batubara (PT SB); PT Pembangkitan Jawa-Bali (PJB); and PT PLN Batubara (PLN BB). PJB and PLN BB are both wholly-owned subsidiaries of PT PLN.
The addition of PJB and PLN BB is seen by BlackGold as endorsement by PLN over the proposed power plant project, which is targeted to start operation in 2020.
Editing by Reiner Simanjuntak