BlackGold, PLN agree to increase coal selling price by 10%
Tuesday, September 12 2017 - 02:11 AM WIB
SGX-listed BlackGold Natural Resources Limited, an Indonesia-focused coal mining firm, said its subsidiary PT Samantaka Batubara (PT SB) has signed an addendum to the coal sales and purchase contract on September 6 with the Indonesian state-owned electricity company PT PLN, under which the coal selling price has been increased by 10 percent.
The company said in a statement last week that this follows an earlier December 1, 2016 announcement regarding PT SB?s entry into the coal sales contract with PLN in relation to the latter?s 2x110 MW Tenayan coal-fired power plant in Riau Province, Indonesia.
The coal sales contract covers a delivery of 500,000 tons per annum of coal for an initial term of five years with an option to extend for three additional 5-year terms, subject to mutual agreement between both parties.
BlackGold said under the terms of the amendment, the selling price of the coal sales has been revised upwards by approximately 10 percent, and is to be applied retrospectively on coal sales from March 2017 onwards.
?We are very pleased to have signed this addendum.? commented Philip Rickard, the Chief Executive Officer of BlackGold group. ?The group looks to strengthen its cooperation with PLN and continue expansion of coal sales from our increased coal reserves.?
BlackGold recently announced substantial increases to coal reserves and resources estimates at its PT SB concession in Riau, as reported in its latest Independent Qualified Person?s Report dated August 10, 2017.
Editing by Reiner Simanjuntak