Ormat and mining firm partner on geothermal exploration in North Sulawesi

Ormat Technologies Inc (NYSE: ORA) and PT Archi Indonesia (IDX: ARCI) have announced a partnership to explore the geothermal potential of the Bitung area in North Sulawesi, particularly the Toka Tindung gold mining concession area. This work will be done under a joint venture company, PT Toka Tindung geothermal (TTG).

PT Archi Indonesia Tbk (“Archi) is one of the largest pure-play gold mining companies in Indonesia. Under the terms of the joint venture, Ormat holds a 75% shareholding interest while 25% will be held by Archi. This is subject to the completion of certain conditions under a Power Purchase Agreement (PPA).

Ormat will be executing the exploration drilling program at the Klabat Wineru prospect. Upon development, Ormat will be developing the field drilling program, as well as the design, engineering, construction, commissioning, operations, and management of the geothermal facilities.

“We are very pleased with the signed corporation agreement as we enter a new chapter and reach a new milestone of our Company. Archi is very proud to take part of the national geothermal projects, and this is in line with our commitment to support environmental sustainability using renewable energy sources.” said Ken Crichton, President-Director of Archi.

“The agreement with Archi, which marks our third joint venture in the country enables us to leverage our expertise and accelerates our efforts to expand our growth in Indonesia and bring clean, renewable energy to the local population.” added Ormat CEO Doron Blachar.

Source: OTC Dynamics