Geo Energy Resources RE4 has announced the completion of its first export shipment of coal from the recently acquired PT Triaryani mine, sold at a premium to Trafigura Asia Trading on Dec 22.
The shipment of 55,000 tonnes of coal was valued at around US$3.2 million ($4.2 million) based on the average selling price of approximately US$58.98 per tonne.
Considering the average Indonesian Coal Index (ICI) 4,200 GAR price stood at US$58.05 per tonne as at Dec 15, Geo Energy says the premium on its maiden shipment sold is an indication of favourable demand for coal from PT Triaryani.
PT Triaryani is a subsidiary of PT Golden Eagle Energy Tbk, in which Geo Energy holds a 58.65% stake. PT Triaryani has been valued at some US$1 billion with proven and probable reserves of 275 million tonnes of low sulphur and low ash coal.
The company says it is currently in discussions with potential off-takers to secure a life-of-mine offtake for the PT Triaryani coal, adding that the arrangement would provide more stability to its sales strategy and bring in an international world class commodity group as a long-term partner.
CEO Charles Melati says: “We target to ramp up PT Triaryani coal production over the next few years to 25 million tonnes per annum, as we expedite the completion of the construction of the integrated infrastructure. This will put Geo Energy in a good position towards achieving its vision of becoming a billion-dollar business.”
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Shares in Geo Energy Resources closed 0.5 cents higher or 1.49% up at 34 cents on Dec 26.
