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 2017
- Consortium proceeds towards completion of final formalities for signing of the PPA
Singapore, 24 January 2018 – 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 coal-fired 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.