Blackgold and China Huadian to develop Indonesian coal plant

Blackgold and China Huadian are coming together with the aim of developing a 600MW coal-fired power plant in Riau Province, Indonesia.

Coal miner Blackgold Natural Resources has entered into a conditional term sheet agreement with China Huadian Engineering to develop the 2×300 MW coal-fired power plant, called Riau 1. The partners are forming a joint venture for the project.

Through its subsidiary, PT Samantaka Batubara (PT SB), Blackgold will take part in joint development, construction, operation and maintenance of the Indonesian power plant with China Huadian.

The joint venture will be joined by a third partner which will have 5 per cent in the JV while BlackGold and China Huadian will have stakes of 44% and 51% respectively.

Blackgold Natural Resources CEO Philip Cecil Rickard said: “Leveraging on the capabilities of China Huadian in power engineering and BlackGold’s expertise in coal mining, we look towards securing the award of the Bid for development of the Riau-1 Project.”

The joint ventureà‚ will be established depending on the successful award of the bid by PLN to the PT SB, China Huadian consortium among other conditions.