Geo Energy?s mining unit to start production in early 2017

By Romel S. Gurky

SGX-listed Geo Energy Resources announced on Friday that PT Tanah Bumbu Resources (TBR) is to start production in early 2017 and expand the group?s coal production to no less than 10 million tons in 2017.

TBR to increase Geo?s revenue to US$350 million in 2017

Geo acquiring TBR mining concession in South Kalimantan and double its coal reserves to more than 100 million ton.

Acquisition of the adjacent TBR will greatly improve the group?s mining efficiency and have great synergistic effects on its costs of production

Acquisition is in line with the group?s core strategy to grow its coal reserves and focus on coal production.

TBR to add 44.4 million tons and doubles the group?s total mineable coal reserves, with an average calorific value of no less than 4,200 kcal/kg (GAR)

Geo reached a Conditional Sales and Purchase Agreement (CSPA) with International Resources Investment Ltd earlier this month to acquire a 98.73 percent stake in TBR mining concession in South Kalimantan for $90 million.

Editing by Johannes Simbolon