BlackGold plans mine mouth power plant in Riau

By Ruli Setiawan

SGX-listed BlackGold Natural Resources Limited said that its Indonesian coal mining subsidiary PT Samantaka Batubara (PTSB) on Friday entered into a non- binding memorandum of understanding (MoU) with PT Nari Indonesia Forever.

The company said in a statement that the MoU is not intended to be legally binding between PTSB and PT Nari, except for certain provisions relating to, inter alia, confidentiality. The MoU shall expire after two years from its date of execution of the MoU or upon signing of a definitive agreement or term sheet by both parties, whichever is earlier.

Pursuant to the MoU, PT Nari will provide design, technology, finance and technical assistance in the planning and feasibility study on a 2 X 300 MW coal-fired power plant project to be located at the mine-mouth of the group?s coal concessions in Indragiri Hulu, Riau, whereas PTSB shall supply the coal required by the project and shall be responsible for the obtainment of the relevant government permits and licences in connection with the project.

Upon the successful completion of the planning and feasibility study, PT Nari and PTSB will, together with other stakeholders to be identified subsequently, enter into a definitive agreement or term sheet for the construction and management of the project, the terms of which will be discussed at a later stage.

Editing by Reiner Simanjuntak