Geo Energy nears completion of Sumatra coal logistics project, secures haulage deals

By Romel S. Gurky

Singapore-listed coal mining and logistics firm Geo Energy Resources Limited said its integrated coal logistics project in South Sumatra has reached 80% completion and is on track to begin operations in mid-2026, as the company moves to build a new revenue stream from infrastructure services.

The project, developed through its subsidiary PT Marga Bara Jaya (MBJ), includes a 92 km hauling road and jetty with a planned capacity of up to 50 million tonnes per year, positioning it as a key coal logistics corridor in the region.

The company said construction is expected to be completed in June or July 2026, with truck hauling trials scheduled to begin in April.

Geo Energy has also signed agreements with China North Vehicle Corporation and PT Citra Andalan Mobilindo Cemerlang to support trial operations, marking a step toward full commercial readiness.

In parallel, the company secured two binding term sheets with third party coal producers for a combined 9 million tonnes per year of haulage volume, establishing an initial base for recurring toll based income.

At full capacity, the MBJ infrastructure could generate up to US$300 million in annual EBITDA within a few years, the company said.

Read also: Geo Energy completes S$15 million share placement

The haulage agreements add to volumes from Geo Energy’s own TRA coal mine, bringing total secured throughput to about 34 million tonnes annually.

The company said the infrastructure expansion is expected to enhance long term earnings resilience by diversifying revenue beyond coal production.

Coal prices have also strengthened in recent weeks, supporting the company’s outlook. The ICI4 coal benchmark rose to about $59.97 per tonne as of March 13, up from an average of $46.37 per tonne in the fourth quarter of 2025.

Geo Energy has set a 2026 production target of 11.5 million to 12.5 million tonnes, subject to regulatory approvals, and said it could generate between $170 million and $200 million in EBITDA from coal sales alone at current price levels.

Executive Chairman and CEO Charles Antonny Melati said the project milestone and haulage agreements demonstrate strong commercial interest and position the company for growth.

Geo Energy operates coal mining assets in South Sumatra and East Kalimantan and also holds a 49% stake in PT Internasional Prima Coal, a joint venture with PT Bukit Asam Tbk.

The group has also expanded into logistics, including increasing its stake in MBJ to 71.3% and acquiring a majority interest in Indonesian shipping companies earlier this year to support its coal supply chain.

Editing by Alexander Ginting