Coal miner BlackGold Natural Resources has entered into a conditional term sheet agreement with China Huadian Engineering to develop a 2×300 MW coal-fired power plant in Indonesia. The power plant project dubbed as Riau 1 will be built in Riau province. Through its subsidiary, PT Samantaka Batubara, Blackgold will take part in the joint development, construction, operation and maintenance (O&M) of the Indonesian power plant with China Huadian. Blackgold and China Huadian are set to form a joint venture (JV) company to carry out their operations at the proposed Riau 1 coal-fired power plant. They will be joined by a third partner who will have 5 per cent stake in the JV while BlackGold and China Huadian will have stakes of 44 per cent and 51 per cent respectively. China Huadian will handle the engineering, procurement and construction (EPC) and O&M tasks of the plant. It will also take care of securing the debt financing needed for the project, which is scheduled to begin commercial operations in 2020.
