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COAL MINER Geo Energy Resources is expanding its services downstream by managing and operating a port terminal in South Kalimantan, Indonesia, for 15 years. |
The new conveyor belt that Geo Energy will construct will be ready within the next two years, running 800 meters into the Java Sea, hence allowing large barges to be loaded directly and not be subject to tidal conditions.
Charles Melati, executive chairman of Geo Energy. NextInsight file photo.Giving an idea of the financials of the port management service, Mr Charles Antonny Melati, Executive Chairman of Geo Energy, said, “We understand that the current port service fee paid by customers are in excess of IDR65,000 (approx.US$5.38) per metric tonne. With a fixed income fee payable to BLB of IDR30,000 (approx.US$2.44) per metric tonne and after operational costs, we believe this will result in a positive contribution to our Group’s financial performance. "This will be further magnified with the completion of the conveyor belt for the existing loading facility.
"As a coal port operator, Geo Energy will slowly transition from being a coal miner and mining services provider to being an integrated coal mining group with upstream and downstream capabilities.”
This increased the Group’s coal reserves by more than 4 fold, from approximately 11 million tonnes to more than 50 million tonnes. Geo Energy is now preparing to ramp up production as coal from the SDJ concession, with an average calorific value of 4,038 kcal/kg (GAR), is valued for its versatility by power plants in China, India and Indonesia.
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