SINGAPORE (July 5): Geo Energy Group’s wholly-owned subsidiary, Geo Coal International (GCI) has entered into an estimated US$1.2 billion ($1.52 billion) long-term life of mine (LOM) coal offtake agreement with Engelhart Commodities Trading Partners (ECTP).

In its stock exchange filing on Tuesday, Geo Energy announced that ECTP is to make a prepayment of US$20 million for the coal offtake agreement for the further development of its wholly-owned PT Sungai Danau Jaya (SDJ) Coal Mine.

This is in addition to a US$4-per-tonne advance on the future coal supply of coal which Geo Energy’s CEO, Tung Kum Hon, says will strengthen the group’s cash flow and financial position as well as reduce its capital commitments on the SDJ coal mine going forward.

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