Geo Energy to supply 1.5mt of coal to BTG Pactual Commodities
Friday, July 3 2015 - 01:13 AM WIB
SGX-listed Geo Energy Resources Limited, an integrated Indonesian coal mining group, said that it has entered into a sales contract to supply 1.5 million tons of coal to BTG Pactual Commodities (Singapore) Pte Ltd.
The company said in a statement that the supply of the 1.5 million tons of coal (+/- 10% at buyer?s option) to BTG will span one year commencing August 2015.
BTG Pactual Commodities (Singapore) Pte Ltd is part of BTG Pactual, which is an innovative global financial firm, based on a dominant fully fledged Latin America Investment Bank, a global Commodities unit and an extensive global Asset and Wealth Management platform.
The coal will be off-taken by BTG Pactual?s coal trading operations in Asia, Geo Energy said.
Geo Energy said the coal will be supplied from the CV. Mandiri Makmur Citra Tambang (MMCT) and the PT Sungai Danau Jaya (SDJ) mining concessions, and with an average calorific value of 4,200 kcal/kg (GAR).
Geo Energy entered into a coal mining arrangement with MMCT in July 2014, a third party mine owner, to produce and sell coal from the concession. On the other hand, Geo Energy acquired SDJ in August 2014 with coal reserve of approximately 42 million tons. Both mining concessions are located at South Kalimantan
?In view of the Indonesian government?s plan to promote domestic coal consumption, which can also help to offset the impact from the uncertain export demand, we are cautiously optimistic that the market will eventually recover and the value of our coal concessions will be realized,? he added.
Elsewhere, Geo Energy said contract has also been secured at an opportune time, coinciding with the recent mining service agreement entered with PT Bukit Makmur Mandiri Utama (BUMA) for the provision of overburden removal and coal hauling services at SDJ mining concession. The mining operation of SDJ is expected to commence in August 2015.
BUMA is the second largest coal mining contractor in Indonesia, providing mining services under long-term operating agreements with some of Indonesia's largest coal producers, such as PT Berau Coal, PT Adaro Indonesia, PT Kideco Jaya Agung and certain subsidiaries of PT Bayan Resources. BUMA is a wholly owned subsidiary of PT Delta Dunia Makmur Tbk, which is listed on the Indonesian Stock Exchange.
Editing by Reiner Simanjuntak