Geo Energy’s new infrastructure unit to boost Ebitda by up to US$350 million annually
[SINGAPORE] Indonesian coal producer Geo Energy Resources : RE4 0% said its newly operational Marga Bara Jaya (MBJ) integrated infrastructure unit could add up to about US$350 million in annual earnings before interest, taxes, depreciation and amortisation (Ebitda) over time.
The infrastructure project marks a new source of earnings for the group beyond coal mining as Geo Energy moves towards becoming an integrated mining, infrastructure and logistics company, it said in a bourse filing on Thursday (Jul 16).
MBJ operates a road and jetty infrastructure business in South Sumatra that handles coal logistics for domestic and export markets.
The development follows Geo Energy’s agreement in May to enter into a term sheet with Swiss-based private commodities investment company Resource Invest (ResInvest) for an investment in MBJ at a valuation of US$1.5 billion.
Under the proposed investment, ResInvest may invest directly in MBJ through the acquisition of existing shares or subscription of new shares, or indirectly through MBJ’s parent company. The parties are targeting an initial investment in the third quarter of 2026, with the remaining investment expected in the first quarter of 2027.
The transaction is also linked to the formation of a new coal marketing joint venture between Geo Energy and ResInvest Commodities (RIC), a subsidiary of ResInvest that currently serves as the coal offtaker for Geo Energy’s Triaryani coal mine.