Geo Energy Resources Achieves 80% MBJ Integrated Infrastructure Completion, Secures Major Third-Party Haulage Deals, and Rides Coal Price Rally

Key Highlights for Investors

• MBJ Integrated Infrastructure reaches 80% completion, on track for full operational readiness by June/July 2026.
• Truck hauling trials to begin in April 2026 with agreements signed with two major service providers.
• Secured two binding term sheets with third-party customers for a total of 9 million tonnes per annum (mtpa) of haulage, creating a robust, recurring toll-based revenue stream.
• Full MBJ capacity targeted at 50 mtpa, potentially generating up to US\$300 million in additional annual EBITDA for the Group within a few years.
• Group’s 2026 coal production target: 11.5–12.5 million tonnes, pending final government approval.
• Coal prices surge nearly 30% since 4Q2025, enhancing revenue outlook and EBITDA guidance.
• 2026 EBITDA from coal sales alone expected at US\$170–200 million, excluding infrastructure and marine logistics contributions.
• Recent strategic acquisitions in commodity logistics further diversify revenue and support growth.

Detailed Report

MBJ Integrated Infrastructure Project Hits 80% Completion, Approaches Commercial Launch

Geo Energy Resources Limited (“Geo Energy”) has announced a significant milestone, achieving 80% completion of its flagship MBJ Integrated Infrastructure project in South Sumatera. The project—comprising a 92km hauling road and a jetty—remains on schedule for completion by June/July 2026. Operational readiness is expected by early Q3 2026.

To ensure smooth commissioning, truck hauling trials are set to commence in April 2026. These trials, supported by Coal Hauling Trial Services Agreements with PT Citra Andalan Mobilindo Cemerlang (“Shacman”) and China North Vehicle Corporation Limited (“CCCC-Norinco”), will assess gradient, load, braking, fuel efficiency, and safety parameters on completed road sections. These partnerships mark a critical preparatory step for the full commercial launch.

Upon reaching its full planned capacity of approximately 50 million tonnes per annum, MBJ is projected to generate up to an additional US\$300 million in EBITDA annually. This represents a significant, new, recurring revenue stream that is expected to enhance Geo Energy’s long-term earnings resilience and provide substantial upside for shareholders.

Secures Major Third-Party Haulage Agreements, Underpinning Revenue Growth

In a move that underscores commercial demand for its infrastructure, Geo Energy has secured two binding term sheets with third-party coal producers for an aggregate of 9 million tonnes per annum of haulage. These deals mark Geo Energy’s first major step in establishing a recurring, toll-based revenue stream from the MBJ corridor.

Together with the 25 million tonnes annual haulage allocated for the Group’s TRA coal mine, up to 34 million tonnes of annual throughput is now secured for the MBJ Integrated Infrastructure. Additional negotiations with other counterparties are ongoing, suggesting further upside.

Coal Prices Rally Amid Global Tensions—Earnings Outlook Strengthens

Global coal prices have surged in recent weeks, driven by geopolitical tensions and disruptions in the gas market that have reinforced coal’s importance for energy security in Asia. The ICI4 coal price soared 29.3%, rising from a 4Q2025 average of US\$46.37 per tonne to US\$59.97 per tonne as of 13 March 2026. McCloskey reported spot trades between US\$61–64 per tonne for March and April cargoes of 4200GAR coal.

Geo Energy’s premium “eco-coal” assets, known for low ash and low sulphur content, remain in high demand from regional power and steel sectors—further supporting robust pricing and sales volumes.

Strong Production and Financial Guidance for 2026

Geo Energy achieved record coal production of 12.5 million tonnes in 2025, surpassing its prior target. For 2026, the Group targets 11.5–12.5 million tonnes (subject to final government approval). At current coal prices, this volume is expected to generate between US\$170–200 million in EBITDA from coal sales alone. This estimate excludes any contributions from the MBJ infrastructure and marine logistics segments, which means actual consolidated EBITDA could be substantially higher upon MBJ’s full ramp-up.

Strategic Acquisitions Strengthen Value Chain and Diversify Revenues

To further enhance logistics, the Group increased its stake in PT Marga Bara Jaya to 71.3% and, as of 8 January 2026, acquired a 51% equity interest in established Indonesian shipping companies specializing in commodity logistics (coal and non-mining products). This enables Geo Energy to rapidly expand its supporting fleet, optimize logistics for its TRA coal mine and MBJ jetty operations, and diversify revenue streams through third-party barging services.

Management Commentary

Charles Antonny Melati, Executive Chairman & CEO:
“Achieving the 80% completion milestone on the MBJ Integrated Infrastructure underscores our disciplined execution and moves us closer to unlocking the full value of our energy platform. At full capacity, MBJ alone is able to generate up to US\$300 million in EBITDA per year for the Group. 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. The recent uplift in coal prices further strengthens the Group’s earnings outlook as we progress toward our long-term growth vision of becoming a billion-dollar business and beyond.”

Potential Share Price Catalysts

• Completion and commissioning of the MBJ infrastructure could unlock significant new recurring revenue streams.
• The haulage agreements provide visibility and stability to future cash flows, potentially improving valuation multiples.
• Rising coal prices and strong demand for low-ash, low-sulphur coal support robust near-term earnings.
• Strategic acquisitions in logistics expand the addressable market and diversify earnings, further reducing operational risks.
• Any further capacity uptake by third-parties or additional commercial agreements could result in earnings upgrades.

About Geo Energy Resources

Geo Energy Resources Limited is a leading Indonesian energy group focused on efficient production of premium, low-ash, and low-sulphur thermal coal. The Group owns three mining concessions in Kalimantan and South Sumatera, holds a significant joint venture with Indonesia’s state-owned PT Bukit Asam, and is listed on the Singapore Exchange.

The company’s integrated infrastructure and logistics investments are set to position it as a key regional player in coal and commodity logistics, supporting its long-term growth ambitions.

For further information, visit www.geocoal.com.

Disclaimer: This article is based on publicly available information and is intended for informational purposes only. It does not constitute investment advice. Investors should conduct their own due diligence or consult with a qualified financial adviser before making investment decisions. The author and publisher accept no liability for any loss arising from reliance on the information presented above.

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