BlackGold to supply coal to PLN?s plant in Riau

By Romel S. Gurky

BlackGold

SGX-listed BlackGold Natural Resources Limited, an Indonesia-focused coal mining firm, said that it has won a contract to supply coal to a new coal-fired power plant in Riau Province owned by Indonesian state-owned electricity firm PT PLN.

BlackGold said in a statement on Thursday that through its subsidiary, PT Samantaka Batubara (PT SB), the group has signed a coal sales and purchase contract on December 1 with PLN for the annual delivery of 500,000 tons of coal to the new 2x110 MW Tenayan power plant.

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. ?The first coal delivery is expected to commence in early 2017,? the company said in a statement.

BlackGold through its subsidiaries operates three coal concessions in Riau Province. PT SB has coal concession for an area of 15,000 hectares in Riau province, and has over 200 million tons of coal resources (JORC code).

Editing by Reiner Simanjuntak