Geo Resources completes S. Kalimantan mine acquisition

By Alexander Ginting

SGX-listed coal mining firm Geo Energy Resources Limited reported on Wednesday that it has completed acquisition of 100% shareholding interest in Fortune Coal Resources Pte. Ltd. that holds an indirect effective equity interest of 98.73% in PT Tanah Bumbu Resources (TBR).

The company said it has paid US$37 million in cash, $13 million in shares and $4 million in receivables. The amount paid by the company was far lower than $90 million originally agreed.

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 tonne of coal and a probable 3.7 million tonne 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. Strategically located beside the coal mine belonging to the Group?s subsidiary, PT Sungai Danau Jaya, TBR?s coal mine possesses similar qualities like thick coal seams, low strip ratio and close proximity to jetty.