Geo Energy to start commercial operation of TBR coal mine in 1Q 2018

By Romel S. Gurky

SGX-listed coal mining firm Geo Energy Resources Limited said it hopes to start commercial operations of a recently acquired coal mine in South Kalimantan in the first quarter of next year.

The company said in a statement on Friday it is currently finalizing the appointment of the mining contractor, and in negotiations with potential offtakers for the PT Tanah Bumu Resources coal. No further details were provided.

Geo Energy acquired in June of this year 100 percent shareholding interest in Fortune Coal Resources Pte. Ltd. that holds an indirect effective equity interest of 98.73 percent in PT Tanah Bumbu Resources (TBR).

Geo Energy?s release in July 2016 said that TBR?s mine is located adjacent to its producing mine in South Kalimantan with 489.1 hectares of mining concession. TBR?s coal mine has a Joint Ore Reserves Committee report (JORC) estimated proved coal reserves of 40.7 million tons of coal and probable reserves of 3.7 million tons of coal with a minimum average calorific rate of 4,200 kcal/kg containing 34.4% total moisture, 39.4% volatile matter, 5.1% ash and 0.24% total sulphur.

Editing by Reiner Simanjuntak