Geo Energy has contracted China Communications Construction Company to build the road and jetty in Indonesia for US$150 million.
PhillipCapital's Paul Chew has initiated coverage on Geo Energy Resources (SGX:RE4
) with a "buy" call and 47 cents price target, on expectations that the coal miner is set to enjoy stronger earnings from higher production levels and a new revenue stream.
Besides its own coal mining business, Geo Energy is building a 92-km road which will be leased to two other nearby miners to move their production to a jetty at the end of this road to be then exported.
