Geo Energy Resources Limited has announced a significant step forward in its infrastructure development in Sumatra, following the signing of a non-binding Memorandum of Understanding (MOU) with Resource Invest AG (ResInvest). The agreement, which outlines a potential investment of between US$50m and US$100m, aims to bolster the MBJ Integrated Infrastructure project, a strategic initiative designed to enhance coal logistics in the region.
The MOU, which is expected to be finalised by the end of 2025, positions MBJ as a pivotal player in the coal industry, with a projected valuation exceeding US$1.5b at full capacity. This development is set to unlock substantial value from Geo Energy’s TRA mine, providing a crucial market route for third-party commodity producers.
In addition to the investment, MBJ has entered into non-binding term sheets with two major mining groups, securing long-term infrastructure usage agreements for up to 25 million tonnes annually. These agreements, with PT Thriveni and PT Astaka Dodol, underscore MBJ’s role as a key logistics hub in South Sumatra, supporting Geo Energy’s strategy to monetise its infrastructure assets.
Charles Antonny Melati, Executive Chairman and CEO of Geo Energy, remarked, “MBJ is more than just an infrastructure project; it’s a game-changer for Sumatra’s natural resources industry, unlocking market access for over 2 billion tonnes of reserves in the region.”
The MBJ project, featuring a 92km hauling road and a jetty, is set to be the largest coal infrastructure in Sumatra, with completion targeted for the first half of 2026. This initiative is expected to significantly enhance Geo Energy’s production capacity and competitive edge, whilst also diversifying its revenue streams as an infrastructure provider.
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