Geo Energy inks agreements to boost coal sales

Geo Energy subsidiaries, Geo Coal International and PT Mitra Nasional Pratama (MNP) have entered into a sale and purchase of coal agreement and coal mining management service agreement, respectively, with AJE covering about 5 million t in 2017.

The AJE coal mine is located close to Geo Energy’s SDJ coal mine with both mines operating in the same coal seam.

“Both agreements represent a positive step in the right direction for our group to move into higher value services in coal mining and to expand our revenue streams beyond our coal assets,” said Tung Kum Hon, CEO of Geo Energy.

In addition to the two agreements with Geo Energy, AJE also intends to appoint PT Bukit Makmur Mandiri Utama (Buma) to provide overburden removal and coal haulage services.

Buma already provides similar services at SDJ and the agreement with AJE will “create significant cost savings, large economies of scale, enhanced operational efficiency and harness synergies between both SDJ and AJE coal mines”, Geo Energy said in a press release.

Geo Energy is also in the process of acquiring a 98.73% stake in PT Tanah Bumbu Resources, which is located adjacent to the SDJ mine and would bring an additional 44.4 million t of coal reserves to the group’s existing assets.

Read the article online at: https://www.worldcoal.com/mining/02112016/geo-energy-inks-agreements-to-boost-coal-sales/