PT SB is a feasibility asset located in Riau province, Sumatra, comprising 15,000 hectares. Through its local subsidiary, BlackGold has the rights to the PT SB concession until 2023.
BlackGold has commenced its commercial production with PT SB mine currently in operation. In accordance with the company’s production schedule, the target production rate for PT SB is 4Mtpa of coal, as the asset has adequate reserves to produce at this rate for over 15 years based on the current geological database and the economic assumptions used for its design.
The calorific value of discovered coal resources at PT SB ranges from 4,184-5,156 kcal/kg (ADB basis), meeting the requirements of nearby power plants for fuel supply. The Group has secured coal supply contracts with several power plants, including the supply of 500,000 tonnes of coal/annum for the Tenayan project, an initiative by Indonesian state-owned electricity company, PT PLN. With the revision of mine-mouth coal pricing regime, the Group qualifies as a mine-mouth coal supplier, as such, the Group will be able to sell its coal to the power plant at a benchmarked production cost plus a margin. This ensures the Group enjoys profit stability in the long run despite any future fluctuations in the coal prices.