Coal reserves triple at BlackGold concession

Coal reserves at BlackGold Natural Resources PT Samantaka Batubara (SB) Concession in Riau, Indonesia, have increased by 227% while resources have increased 150% compared to the August 2016 figures. The company aims to support Indonesias rapidly growing power plant industry.

The latest independent qualified persons report prepared by PT GMT Indonesia shows that total coal reserves at PT SB increased from 45 million tonnes to 147 million tonnes while resources increased from 210 million tonnes to 520 million tonnes.

BlackGold said the reported reserves assume and is dependent on the company being successful with its bid to annually supply 3.5 million tonnes of coal to the Riau 1 Mine-Mouth Power Plant. The company is of the opinion that there is a reasonable expectation that the current bid to supply coal to the plant will proceed.

PT GMTs report was prepared according to the guidelines of JORC 2012.

BlackGolds chief executive officer Philip Rickard said, We are very encouraged by the stellar growth in our coal assets.

The substantial increase in PT SB Concessions coal reserves accelerates the groups strategy of becoming a major coal producer in Indonesia.

We are also very pleased as this affirms the sufficiency of BlackGolds coal reserves, enhancing our abilities to negotiate increases for future coal deliveries to our existing customers, and for the planned 30-year exclusive coal supply to a 2 x 300 MW coal-fired mine-mouth power plant.

Through long-term, fixed offtake agreements with its principal customers, the BlackGold Group has a customer portfolio consisting of state-owned and independent power plants and factories.

The group, through its local subsidiaries, has the rights to three coal concessions in Riau, Indonesia.