GEMS to sell coal to affiliated power company
Friday, May 8 2015 - 01:35 AM WIB
SGX-listed Golden Energy and Resources Limited announced on Friday that its subsidiary IDX-listed coal mining firm PT Golden Energy Mines Tbk (GEMS) has entered into a non- binding memorandum of understanding with affiliated firm PT DSSE Energi Mas Utama (DEMS) dated May 6, 2015, pursuant to which GEMS contemplates selling such amount of coal to DEMS and its subsidiaries as required by its power plants, subject to the execution of definitive agreements.
DEMS is in the power generation business and owns, among other things, coal concessions through its subsidiaries. DEMS is a substantially-owned subsidiary of IDX-listed PT Dian Swastatika Sentosa Tbk, which also controls Golden Energy and Resources.
DEMS, through its subsidiary PT DSSP Power Kendari, has been appointed as the preferred bidder for the procurement of a steam power plant with capacity of 2x 50MW (Kendari Project). In addition, the DEMS Group intends to capitalize on opportunities arising from the Indonesia government?s intention to construct 35,000 MW power plants, to expand its power business by, inter alia, participating in other power plant projects in Indonesia (Future Projects).
?Under the terms of the MOU, GEMS contemplates selling such amount of coal to the DEMS Group as required by the Kendari Project and Future Projects. DEMS shall confer to GEMS first priority to supply any coal required by the Kendari Project and Future Projects, provided that, inter alia, the coal supplied by GEMS satisfies the required specifications and the price range,? Golden Energy and Resources said in a statement.
Editing by Reiner Simanjuntak