Indonesia-focused coal miner BlackGold Natural Resources on Monday said it entered into a agreement with various parties to form a consortium for the development of a coal-fired power plant in Indonesia.
The consortium consists of BlackGold, China Huadian Engineering, PT Samantaka Batubara, PT Pembangkitan Jawa-Bali and PT PLN Batubara. PJB and PLN BB are both units of PT Perusahaan Listrik Negara (PLN).
The Riau-1 project involves development, construction, operation and maintenance of a 2 x 300 mega watt coal-fired power plant in Riau province, Sumatra in Indonesia.
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 said in a statement.
It is anticipated that BlackGold, CHEC and PJB will hold equity interests in the joint venture company.
As per the deal, power generation company PJB shall be appointed as the project leader.
CHEC shall secure lenders for the financing of the Riau-1 Project while 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 agreement, the company said.
BlackGold Natural Resources shares rose 2.8 percent to S$0.112 on the Singapore Exchange.