Geo Energy outsources most of its mining operations to contractors in Indonesia, allowing it to keep production costs low. Most of its coal is exported to China, its largest market by revenue, and several other Asian countries through long-term offtake agreements with Macquarie Bank and commodity traders Trafigura and EP Resources. Indonesia is its next largest market.
Indonesia-based Geo Energy Resources (SGX:RE4
) is making an audacious push with a major infrastructure project in South Sumatra. It aims to turbocharge its growth, reshape its earnings profile and cement its role as a regional energy heavyweight, even as environmental opposition to coal escalates.
The Singapore-listed miner focuses exclusively on thermal coal, the crucial feedstock for power generation. It holds five coal concessions spread across Kalimantan and South Sumatra in Indonesia. Four are already in production, while one is in exploration. Through a joint venture with Indonesia-listed coal giant PT Bukit Asam, it also holds a 49% stake in a producing coal mine in East Kalimantan.
