Geo Energy Resources announced that its Integrated Infrastructure, comprising an approximately 92km hauling road and an associated jetty at the South Sumatera and Jambi Province, Indonesia, has secured approval from China Export & Credit Insurance Corporation (Sinosure) to provide full insurance coverage to support the development of the Integrated Infrastructure, valued at US$150 million.
Sinosure is a state-funded and policy-oriented insurance company in China, specialising in export credit insurance. It plays a key role in facilitating Chinese investments and exports by providing insurance coverage for projects that involve Chinese enterprises.
The endorsement from Sinosure ensures credit risk coverage that facilitates the Engineering, Procurement, and Construction (EPC) contractors in securing financing for the Integrated Infrastructure, enabling the related construction activities to move forward with greater confidence.
The MBJ Project represents a strategic leap forward in the group’s growth plans to enhance logistics efficiency and coal production capabilities for its TRA coal mine. This transformation initiative will enable the group to achieve the following key objectives: realise significant cost savings of over US$10 per tonne in coal transportation by leveraging dedicated infrastructure; boost production capacity of TRA coal mine to 25 million tonnes per annum upon project completion; and generate additional income streams through infrastructure operations and by providing third-party access to the Integrated Infrastructure, including the road and jetty facilities.
Construction activities are already well underway, with land clearing and cut and fill works commencing since August 2024. Since the groundbreaking ceremony in November 2024, construction momentum continues to build, with additional equipment mobilised progressively to accelerate the development of the road and jetty. The project remains on track for completion in the first half of 2026, aligning with the group’s ambitious timeline.
Charles Antonny Melati, executive chairman & CEO of Geo Energy says: "The support from Sinosure further solidifies our collaboration with our esteemed partners, CCCC First Harbor Consultants and Norinco International, who are leading the project as EPC Contractors. Their technical expertise and dedication, combined with our shared commitment to success, ensure that the project’s progress remains on schedule and within scope."
"As we advance towards the completion of this landmark infrastructure, we remain steadfast in our mission to enhance the Group’s capabilities and operational competitiveness. We are committed to keeping our stakeholders updated on key project milestones and look forward to the positive impact the MBJ Project will bring to our long-term growth strategy and shareholder value."
Shares in Geo Energy closed at 31 cents on Dec 26.
