Geo Energy’s new infrastructure unit to boost Ebitda by up to US$350 million annually
Newly operational Marga Bara Jaya integrated unit marks a new source of earnings beyond coal mining
[SINGAPORE] Indonesian coal producer Geo Energy Resources 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.
Strong commercial positioning
On Thursday, Geo Energy commenced the first loading operations using MBJ’s infrastructure, involving about 50,000 tonnes of coal from the Triaryani mine for a domestic customer. The shipment was valued at about US$3.2 million.
This “establishes an integrated logistics corridor to support the efficient transportation of coal products to domestic and international markets”, said Charles Antonny Melati, executive chairman and chief executive officer of Geo Energy.
“As MBJ progresses towards full operations, its scale and integrated capabilities are expected to unlock significant operating efficiencies, expand the earnings potential, and create new revenue streams through third-party infrastructure services,” he added.
Geo Energy also noted that the infrastructure will reduce logistics costs for Triaryani as the mine scales up. Once Triaryani reaches full capacity, the cost savings from the MBJ infrastructure could contribute up to US$100 million annually to group Ebitda, it said.
Beyond supporting its own mining operations, MBJ is also expected to generate additional recurring income by providing logistics services to third-party miners.
Geo Energy said leasing excess hauling and jetty capacity could contribute up to US$250 million in annual Ebitda when MBJ reaches its targeted throughput capacity of around 50 million tonnes a year.
This reflects the infrastructure’s scale, cost advantages and strong commercial positioning, said Geo Energy,
With MBJ becoming operational, the group is targeting more than a doubling of coal sales to about eight million tonnes in the second half of 2026. It had sold about 3.6 million tonnes of coal in the first half of the year.
Shares of Geo Energy closed flat at S$0.555 on Thursday.
