– Increased selling price in long-term offtake agreement
– Continued strengthening of cooperation with Indonesia’s state-owned electricity company
SINGAPORE — BlackGold Natural Resources Limited (the “Company”, and together with its subsidiaries, the “Group” or “BlackGold”) is pleased to announce that the Group, through its subsidiary, PT Samantaka Batubara (“PT SB”), has signed an addendum (the “Amendment”) to the coal sales and purchase contract (the “Coal Sales Contract”) on 6 September 2017 with the Indonesian state-owned electricity company, PT Perusahaan Listrik Negara (“PLN”).
This follows an earlier announcement by the Company on 1 December 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 Coal Sales Contract covers a delivery of 500,000 tonnes per annum of coal for an initial term of 5 years 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,” commented Mr Philip Rickard, the Chief Executive Officer of the Group. “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, as reported in its latest Independent Qualified Person’s Report dated 10 August 2017.