Geo Energy Resources Limited, a leading Indonesian coal producer listed on the Singapore Stock Exchange, has achieved a pivotal milestone in its growth strategy with the announcement of full insurance backing from China Export & Credit Insurance Corporation (SINOSURE) for its USD150 million Integrated Infrastructure project. This development is expected to significantly boost the company’s operational efficiency and expand its revenue streams, marking a major step forward in its vision to become a billion-dollar energy group.

Key Highlights

• The Integrated Infrastructure project includes a 92km hauling road and an associated jetty located in South Sumatera and Jambi Province, Indonesia.
• SINOSURE, a state-funded policy-oriented insurance company in China, has provided full insurance coverage, ensuring credit risk protection for the project.
• The project is designed to support a road haulage capacity of 40-50 million tonnes per year, with 25 million tonnes reserved for Geo Energy’s PT Triaryani (TRA) coal mine and the additional capacity leased to third parties to generate recurring income.

Strategic Implications for Shareholders

Shareholders should note that this project is expected to generate significant cost savings and open up new revenue streams for Geo Energy:

• Projected cost savings of over USD10 per tonne in coal transportation, improving Geo Energy’s operating margins.
• Enhanced production capacity for the TRA coal mine, which will increase output to 25 million tonnes per annum upon project completion.
• Recurring income opportunities from leasing infrastructure access to neighboring coal mines.

Construction activities are already underway, with land clearing and groundwork commencing in August 2024. The project is on track for completion in the first half of 2026, aligning with Geo Energy’s ambitious timeline. This development is expected to deliver long-term value for shareholders and could positively impact the company’s share price.

Collaborative Efforts with Renowned Partners

Geo Energy is working closely with CCCC First Harbor Consultants and Norinco International, two leading engineering and construction firms, as its Engineering, Procurement, and Construction (EPC) contractors. Their expertise, combined with SINOSURE’s financial backing, ensures the project remains on schedule and within its defined scope.

Leadership Commentary

Commenting on this major milestone, Mr. Charles Antonny Melati, Executive Chairman and CEO of Geo Energy, stated:

“We are proud to have secured SINOSURE’s full insurance backing for the USD150 million project. This achievement reflects the confidence and trust that one of the world’s most respected financial institutions has placed in our vision and execution capabilities. It also serves as a powerful endorsement of the Group’s strategic growth plan and our unwavering commitment to operational excellence.”

About Geo Energy Resources

Geo Energy Resources Limited is a major Indonesian coal producer operating low-cost, premium coal assets with low ash and low sulfur characteristics. With mining concessions in Kalimantan and South Sumatra, the company focuses on increasing production capacity and diversifying its energy value chain. Geo Energy is part of the Singapore FTSE-ST index and maintains collaborations with world-class partners to drive its growth strategy.