BlackGold Natural Resources, through its subsidiary PT Samantaka Batubara (SB), has signed an amendment to the coal sales and purchase contract with Indonesian state-owned electricity company, PT Perusahaan Listrik Negara (PLN). The amendment increases the selling price in the long-term offtake agreement by approximately 10%.
This follows an earlier announcement by BlackGold on December 1, 2016 regarding PT SB's entry into the Coal Sales Contract with PLN in relation to the PT Tenayan project, which is a 2 x 110 MW power plant in Riau Province, Indonesia.
The contract covers a delivery of 500,000 tonnes per annum of coal for an initial 5-year term with an option to extend for three additional 5-year terms, subject to mutual agreement between both parties.
Under the terms of the amendment, the selling price of the coal sales has been revised upwards by approximately 10%, and is to be applied retrospectively on coal sales from March 2017 onwards.
“We are very pleased to have signed this addendum,” said BlackGold’s CEO Philip Rickard. “The group looks to strengthen its cooperation with PLN and continue expansion of coal sales from our increased coal reserves.”
BlackGold recently announced substantial increases to coal reserves and resources estimates at its PT SB concession.
BlackGold 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 PT SB, has a coal concession for an area of 15,000 hectares, and has over 500 million tonnes of JORC-compliant coal resources.