BlackGold, China Huadian, PLN units to team up on Riau project

BLACKGOLD Natural Resources has made a deal with various parties to form a new consortium to work on the development, construction, operation and maintenance of a coal-fired power plant in Riau province in Sumatra, Indonesia known as Riau-1 project.

The heads of agreement (HOA) was made on Sept 15 with China Huadian Engineering, PT Samantaka Batubara - a subsidiary of BlackGold, PT Pembangkitan Jawa-Bali (PJB) and PT PLN Batubara (PLN BB). PJB and PLN BB are wholly owned subsidiaries of PT Perusahaan Listrik Negara (PLN).

Upon the successful award of the Riau-1 project by PLN to the consortium, the latter would establish a joint venture company which would then enter into the relevant power purchase agreement with PLN and construct and commission the Riau-1 project.