GEO ENERGY: Big Money Flowing into Sumatran Coal -- and This Company's New Road to Riches

Geo Energy, a Singapore-listed coal producer, has just dropped some major news about its Integrated Infrastructure project.

First off, it's got this new sweet deal with Resource Invest AG (ResInvest), which previously invested over US$30 million and became Geo Energy’s substantial shareholder.

Now, ResInvest, a Swiss private commodities investment company, is talking about throwing in another US$50-$100 million into PT Marga Bara Jaya (MBJ), which is Geo Energy's subsidiary working on this infrastructure project.

They're aiming to seal the deal by the end of 2025, which may include other co-investments with Geo Energy.

In an MOU, they're saying that when this project is running at full steam, MBJ could be worth over US$1.5 billion.

chart3.25 When completed, it will be largest and most advanced coal infrastructure in Sumatra. It's designed to handle the largest capacity (with a targeted road haulage capacity of 40-50 m tonnes per year) in the region.

What this project actually is -- it's not just some boring road. We're talking about a state-of-the-art 92km hauling road and a jetty at one end of it.

This is designed to handle up to 40-50 million tonnes of coal per year.

It's the biggest and most advanced coal infrastructure in Sumatra.

MOU ResInvest3.25 L-R: Huang She Thong (CEO of Indonesia, Geo Energy) | Andrew Bingham (Head of Asia, EP Resources) | Dhamma Surya (Executive Director, Geo Energy) | Budi Susanto (Minority shareholder, MBJ) | Tomas Novotny (Chairman of EP Resources and Founder of ResInvest) | Charles Antonny Melati (Executive Chairman & CEO, Geo Energy) | Philip Hendry (Group COO, Geo Energy) | Lu King Seng (Business Development Director, Geo Energy) | Adam Tan (Group CFO, Geo Energy) | Dane Alexander (MD, ResInvest)

Geo Energy's not just building the infrastructure for itself.

It's got two other mining companies lining up to use it and they have just signed non-binding term sheets:

PT Thriveni is signing up to move 15 million tonnes of coal per year on this road, starting from 2028.

And they want to use it for up to 50 years.
PT Astaka Dodol is jumping on board too, with plans to move up to 10 million tonnes per year, kicking off in July 2026 for 10 years.

Stock price	31 c
52-wk range	24 – 38 c
PE (ttm)*	8.8
Market cap	S$438 m
Shares outstanding	1.41 b
Dividend yield (ttm)	3.2 %
1-yr change	-15%
P/B	1.0
* 3.53 SGD cents EPS

These deals are huge because they show that other big players in the industry are taking this project seriously.

When the infrastructure is ready by mid-2026, Geo Energy aims to ramp up production at its PT Triaryani (TRA) coal mine to a whopping 25 million tonnes per year.

Plus, by offering this infrastructure to other miners in the vicinity, Geo Energy is diversifying its income streams.

The infrastructure could generate US$300-400 million in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) annually, which is some serious cash flow.

As Geo Energy owns 63.7% of MBJ, a big chunk of it is going straight to Geo Energy's pocket.

The Big Picture

“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."
-- Charles Melati,
Executive Chairman,
Geo Energy

Global coal demand is expected to keep breaking records through 2027, and there's not enough investment in production to keep up, according to Geo Energy.

All in all, it looks like Geo Energy is making some big moves.

It's not just digging up coal anymore but becoming a major player in the whole energy supply chain.

See also: GEO ENERGY: From Rainy Days to Sunny Prospects: This Company’s Infrastructure Move Will Pay Off Big

Geo Energy's press release is here.
Also, a brochure and a video on the project.

GEO ENERGY: Big Money Flowing into Sumatran Coal -- and This Company's New Road to Riches

You may also be interested in: