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17 Mar 2025
Geo Energy Signs MOU for Investment of US$50-US$100 Million for MBJ Integrated Infrastructure and Signs Term Sheets for Long-Term Infrastructure Usage Agreements for up to 25 Million Tonnes per annum
Geo Energy has entered into a non-binding Memorandum of Understanding (“MOU”) with Resource Invest AG (“ResInvest”), a leading commodities investment company and a key shareholder of Geo Energy regarding an investment of US$50-US$100 million, subject to further negotiations, in MBJ as well as other potential co-investments with Geo Energy. The MOU further states that at full capacity, MBJ’s valuation should exceed US$1.5 billion.
• The investment agreement is targeted to be concluded by the end of 2025.
• MBJ is set to unlock significant value from Geo’s TRA mine, while also offering a strategic route to market for third-party commodity producers in the region.
• ResInvest previously invested over US$30 million and became Geo Energy’s substantial shareholder, in a deal signed together with the life-of-mine coal offtake
entered with EP Resources AG for PT Triaryani’s (“TRA”) coal, in February 2024.
Usage Leases with 2 Major Mining Groups for up to an aggregate of 25 million tonnes annually for up to 10 and 50 years MBJ, subsidiary of Geo Energy that is developing the Integrated Infrastructure project, entered into two non-binding term sheets with major mining groups for the usage of the infrastructure. These non-binding term sheets represent significant commitments from major coal producers, reinforcing MBJ's role as the key coal logistics hub in South Sumatra. These agreements support MBJ’s revenue model and enhance Geo Energy’s infrastructure monetization strategy.
Featuring a state-of-the-art 92km hauling road and an associated jetty, MBJ will be the largest and most advanced coal infrastructure in Sumatra designed to handle the largest capacity (with a targeted road haulage capacity up to 40-50 million tonnes per year) in the region. (Please see MBJ brochure and video that were presented at this event, and which have been uploaded on the Company’s website).
Upon completion (targeted by the first half of 2026), the Integrated Infrastructure will be instrumental to the Group’s growth plans of its TRA coal mine to increase production of up to 25 million tonnes per annum over the next few years, allowing the Group to enhance its competitive edge, provide a captive market for natural resources in the region and diversify its revenue stream as an infrastructure provider.
Commenting on MBJ’s latest corporate milestones, Mr Charles Antonny Melati, Executive Chairman & Chief Executive Officer of Geo Energy, said:
“MBJ is more than just an infrastructure project, it’s a game-changer for Sumatra’s natural resources industry, unlocking market access for over 2 billion tonnes of reserves in the region. This initiative enhances supply chain efficiency, cost-effectiveness, and sustainability, delivering long-term value for all stakeholders.
The further investment from ResInvest into MBJ at a strong valuation and commitments from two major mining groups is a powerful endorsement of our vision and efforts. It underscores the trust and confidence our valued partners and investors place in us.
With global coal demand expected to break new records through 2027 and supply constrained by underinvestment in production, MBJ’s Integrated Infrastructure stands at the heart of a rapidly expanding opportunity. This infrastructure will play a pivotal role in scaling up the TRA coal mine, driving substantial logistical cost savings as we increase production to 25 million tonnes annually.
Furthermore, it strengthens our ability to generate sustainable, recurring cash flow as a leading infrastructure provider.
Together with our partners and investors, we are leading the way toward a more efficient, sustainable future in the global energy market.”