BlackGold seals deal with China Huadian, PLN units for Riau coal project

The new consortium is for the development, building, and O&M of 2x300MW Riau-1 plant.

BlackGold Natural Resources announced that it sealed an agreement with various parties to form a new consortium for the development, construction, operation and maintenance of a 2 x 300 MW coal-fired power plant in Riau province, Sumatra, Indonesia.

The consortium shall consist of BlackGold, China Huadian Engineering Co., Ltd, PT Samantaka Batubara (PT SB), a subsidiary of the Company, PTPembangkitan Jawa-Bali (PJB), and PT PLN Batubara (PLN BB). PJB and PLN BB are both wholly-owned subsidiaries of PT Perusahaan Listrik Negara (PLN).

Upon the successful award of the Riau-1 Project by PLN to the consortium, the consortium will establish a joint venture company which will enter into the relevant power purchase agreement with PLN and construct and commission the Riau-1 Project.

It is anticipated that the BlackGold, China Huadian, and PJB will hold equity interests in the joint venture company.

PJB shall be appointed as the project leader. China Huadian shall secure lenders for the financing of the Riau-1 Project and will fulfil the technical criteria for the Riau-1 Project in accordance with a procurement document to be issued by PLN.

PT SB and PLN BB will jointly ensure the supply of coal from PT SB’s mining concession to the Riau-1 Project for the duration of the PPA.