Geo Energy Resources Limited (SGX:RE4
) (Geo Energy) announced that its Integrated Infrastructure project under PT Marga Bara Jaya (MBJ), comprising a 92km hauling road and jetty in South Sumatera, has achieved the 80% construction milestone and is on track for completion by early 3QFY2026.
“To ensure seamless commissioning of the hauling road, MBJ will commence truck trial tests in early April, conducted on completed road sections to validate operational readiness. Trial parameters will include gradient, load, braking, fuel efficiency and safety on completed sections of MBJ road,” states Geo Energy.
To support the truck trials, Geo Energy has signed two Coal Hauling Trial Services Agreement with PT Citra Andalan Mobilindo Cemerlang (Shacman) and China North Vehicle Corporation Limited (CCCC-Norinco) in January.
“At full operational capacity of around 50 million tonnes of haulage per annum, the MBJ Integrated Infrastructure is targeted to generate up to an additional US$300 million in EBITDA per annum for the Group within a few years’ time, reflecting its scale, cost efficiency and commercial potential,” Geo Energy adds.
Two binding term sheets with third parties
At the same time, Geo Energy announced that it managed to secure two binding term sheets with third-party coal producers for an aggregate haulage volume of approximately 9 million tonnes per annum.
Together with the 25 million tonnes annual haulage allocated for the TRA coal mine, Geo Energy has secured up to 34 million tonnes annual throughput for the MBJ Integrated Infrastructure.
“At full capacity, MBJ alone is able to generate up to US$300 million in EBITDA per year for the Group,” says Charles Antonny Melati, executive chairman and CEO of Geo Energy.
“The binding term sheets with third parties for an aggregate haulage volume of 9 million tonnes per annum and the trial agreements with CCCC-Norinco and Shacman demonstrate the strong commercial interest in the Integrated Infrastructure and our readiness for operations,” he adds.
Shares of Geo Energy closed at 50 cents on March 17, down 6.54% for the day and up 56.25% in the past year.
