BlackGold's coal mine in Indonesia holds 147m tonnes of reserves, independent study finds

SINGAPORE - Catalist-listed coal miner BlackGold Natural Resources said that an independent assessment showed its mining concession area in Indonesia holds 147 million tonnes of proved and probable coal reserves.

The independent assessment carried out by qualified geoscientists stated that the concession held by PT Samantaka Batubara holds 55 million tonnes of proved coal reserves and another 92 million tonnes of probable coal reserves, the listed coal miner said.

BlackGold Natural Resources will tap these reserves to supply 3.5 million tonnes of coal per annum to its Riau-1 Mine-Mouth Power Plant project in Indonesia.

The coal miner added that there is a reasonable expectation the plan to supply coal to the Riau-1 project will proceed, given the award of a letter of intent from Indonesia's state-owned utility group, PT Perusahaan Listrik Negara (PLN) as announced by the listed company.

On Jan 24, BlackGold Natural Resources announced the receipt of a letter of intent from PLN for the award of a power purchase agreement (PPA) relating to the Riau-1 project.

The coal miner had said that the consortium behind Riau-1 project will seal a definitive agreement with PLN pertaining to the unit sales price of electricity, the duration of the PPA and commencement date for the construction of the project.

The consortium members of the Riau-1 project comprise BlackGold Natural Resources, PT Pembangkitan Jawa-Bali, PT PLN Batubara and China Huadian Engineering Co.