Since its listing on SGX in 2012, Geo Energy Resources has operated as a coal producer in Kalimantan and South Sumatra.

It has acquired mining concessions to boost production and currently holds four. 

To date, the group has sold 76.3 million tonnes of coal, generating approximately US$1.1 billion in cash profits, says CFO Adam Tan at a 1HFY25 results briefing.

In 2023, Geo Energy took steps to elevate its business. It acquired a majority 58.65% stake in PT Golden Eagle Energy Tbk, gaining control over the PT Triaryani (TRA) coal mine, and a 63.7% interest in PT Marga Bara Jaya (MBJ).

Largely untapped, the TRA mine boasts 273 million tonnes of 2P reserves and 385 million tonnes of resources, positioning it as a cornerstone for future production growth.

These acquisitions are synergistic: MBJ is developing a 92-km integrated haul road and jetty infrastructure project, designed to handle up to 40-50 million tonnes of annual throughput.

This setup will enable faster and cheaper transport of coal from the TRA mine to the jetty.

Now, Geo Energy has unveiled yet another strategic move --  it would acquire two vessel companies to transport coal from the jetty at the end of the MBJ road to mother vessels shipping it to clients.

Vessel leasing works for small volumes (like Geo's current 10-12 million tons of coal a year), but scaling to 40-50 million tons with the TRA mine and third party mines? Forget it.

As it ramps up coal production at the TRA mine, Geo Energy plans to expand its fleet of tugs and barges substantially over the next few years.

River traffic can be a nightmare—narrow channels mean one breakdown halts everything, and can potentially wipe out a lot of profit, says Mr Philip Hendry, the Chief Operating Officer of Geo Energy.

Owning the fleet also ensures quality control, preventing costly disruptions.

"This is something that we must do... it's not an option. It's going to pay back in a short period of time."

The acquisitions of the vessel businesses, combined with the road-jetty infrastructure position, Geo Energy as a monopoly in the region with owners of neighboring mines holding 2 billion tons of coal reserves showing keen interest in using the facilities due to significant cost savings.

https://www.nextinsight.net/story-archive-mainmenu-60/948-2025/16327-geo-energys-ambitious-mine-to-market-path-to-supply-chain-resilience