Geo makes third prepayment for acquisition of S. Kalimantan coal mines

By Romel S. Gurky

SGX-listed Geo Energy Resources Ltd, an investment firm engaged in mining and selling of coal primarily in Indonesia, said Saturday it has signed a third additional agreement Friday to pay another US$12.7 million (third prepayment sum) to Optimum Source Ltd as part of the consideration for the acquisition of Borneo International Resources Pte Ltd (BIR).

Geo Energy completed on August 18 the acquisition of 66 percent shares of BIR, which owns coal mines in South Kalimantan, for $55 million, and made the first payment of $10 million. Subsequently, the company made three other payments totaling $35 million.

BIR, through its Indonesian?s subsidiary PT Sungai Danau Jaya (SDJ), owns two coal concessions in Tanah Bumbu Regency, South Kalimantan, with a combined area of 236.1 hectares, and contain coal with an average calorific value of 4,038 kcal/kg (GAR).

Editing by Reiner Simanjuntak