Post by : Shakul

Geo Energy Resources Limited has announced that its integrated infrastructure project in South Sumatra has reached 80% completion, marking a major milestone toward operational readiness by mid-2026. The project, developed under PT Marga Bara Jaya (MBJ), includes a 92-km hauling road and jetty designed to support large-scale coal logistics.

The company has also secured two binding term sheets with third-party customers for approximately 9 million tonnes of annual haulage, creating a new recurring revenue stream through toll-based logistics services. At full capacity of around 50 million tonnes annually, the infrastructure is expected to generate up to US$300 million in EBITDA in the coming years.

To prepare for operations, Geo Energy will begin truck hauling trials in April 2026, supported by agreements with partners including China North Vehicle Corporation Limited. These trials will assess operational efficiency, safety and logistics readiness ahead of full commissioning.

Meanwhile, global coal prices have surged amid geopolitical tensions and energy supply disruptions. Benchmark ICI4 coal prices rose to nearly US$60 per tonne in March 2026, significantly higher than late 2025 levels. This price rally is expected to boost Geo Energy’s earnings, with the company targeting 11.5–12.5 million tonnes of coal production in 2026 and projecting strong revenue growth driven by both mining and infrastructure operations.

The developments highlight Geo Energy’s strategy to diversify income streams and strengthen its position in the regional energy supply chain, particularly as demand for coal remains strong across Asia.

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