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BlackGold Consortium Awarded Letter of Intent from PLN for PPA on the Riau-1 Project
- Formally receives Letter of Intent from PLN on 23 January 2018
- Consortium proceeds towards completion of final formalities for signing of the PPA
SINGAPORE, Jan 24, 2018 - (ACN Newswire) - BlackGold Natural Resources Limited ("BlackGold" or the "Company", and together with its subsidiaries, the "Group") is pleased to announce that the consortium (of which BlackGold is a member), has received a Letter of Intent ("LOI") from PT Perusahaan Listrik Negara ("PLN") for the award of a Power Purchase Agreement ("PPA") relating to the Riau-1 Project.
The consortium, comprising BlackGold, PT Pembangkitan Jawa-Bali ("PJB"), PT PLN Batubara ("PLN BB") and China Huadian Engineering Co., Ltd. ("CHEC"), (collectively, the "Consortium"), will develop, construct, operate and maintain a 2 x 300 MW mine mouth coalfired power plant (the "Riau-1 Project").
Pursuant to the LOI, the Consortium will enter into a definitive PPA with PLN upon fulfilling certain terms and conditions as stipulated in the LOI, including but not limited to i) the unit sales price of electricity, ii) the duration of the PPA and iii) the commencement date for construction of the Riau-1 Project.
Following its receipt of the LOI, the Consortium shall establish a joint venture company for the Riau-1 Project, to finalize a long-term fixed offtake agreement with BlackGold's subsidiary PT Samantaka Batubara for the supply of coal to the Riau-1 Project and conclude the signing of the PPA.
Commenting on the LOI, Mr Philip Rickard, CEO of the Group said: "This is by far the biggest milestone in BlackGold's journey towards our ultimate goal of securing the Riau-1 Project. We shall work in earnest to complete all necessary formalities leading up to final signing of the PPA with PLN."
Information on PLN, PJB and CHEC
PLN is Indonesia's state-owned power distribution company.
PJB is a power generation company with the aim of promoting Indonesia's economic development by providing high-quality, reliable and sustainable energy supply. PJB is a wholly-owned subsidiary of PLN.
PLN BB provides support to its parent company, PLN, for the obtainment of coal for generation of electricity.
CHEC is a state-owned power engineering company in China. CHEC's core businesses encompass high tech product research and development, engineering design, general contracting, as well as energy technology research and services. CHEC is currently involved in project construction, investment, operation and maintenance of various power projects located in Indonesia.
ABOUT BLACKGOLD (Bloomberg Ticker: BHR:SP)
The Group is an Indonesia-focused coal mining company targeting Indonesia's rapidly growing power plant industry. Through long term, fixed offtake agreements with its principal customers, the Group has a customer portfolio consisting of state-owned and independent power plants and factories.
The Group, through its local subsidiaries, has the rights to three coal concessions in Riau, Indonesia.
Currently, the Group, through its subsidiary PT Samantaka Batubara, has a coal concession for an area of 15,000 hectares, and has over 500 million tonnes of Coal Resources (JORC Code compliant). For more information, please visit www.blackgold-group.com.
Contact:
BlackGold Group
T: +65 6884 4418
E: info@blackgold-group.com
This press release has been prepared by the Company and its contents have been reviewed by the Company's Sponsor, SAC Capital Private Limited (the "Sponsor"), for compliance with the relevant rules of the Singapore Exchange Securities Trading Limited (the "SGX-ST"). The Sponsor has not independently verified the contents of this announcement.
This press release has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this press release including the correctness of any of the statements or opinions made or reports contained in this announcement.
The contact person for the Sponsor is Ms. Tay Sim Yee (Telephone number: +65 6532 3829), at 1 Robinson Road, #21-02 AIA Tower, Singapore 048542.
Source: BlackGold Natural Resources Ltd
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