Geo Energy inks road use agreement

It has also signed an MoU with key shareholder Resource Invest AG.

Geo Energy Resources has signed non-binding term sheets with two mining groups to use a road it is building in South Sumatra to bring coal from their mines for export.

MBJ, a subsidiary of Geo Energy, is building the 92-kilometre hauling road associated with the jetty. It will be the largest coal infrastructure in Sumatra which can handle a road haulage capacity of up to 40 to 50 million tonnes per year.

Upon completion by the first half of 2026, the infrastructure will be instrumental to the group’s growth plans for its TRA coal mine to produce up to 25 million tonnes per annum over the next few years.

Geo Energy has also signed an MoU with key shareholder Resource Invest AG (ResInvest) regarding an investment of $66.6m (US$50m) to $133m (US$100m) in MBJ and other potential co-investments.

($1=US$0.75)