Geo Energy announces operational launch of MBJ Integrated Infrastructure
Coal miner Geo Energy Resources (SGX:RE4) announced that the MBJ Integrated Infrastructure has begun operational on July 16, with the first loading operation from PT Triaryani (TRA) coal mine of around 50,000 tonnes of shipment valued at around US$3.2 million ($4.1 million).
Geo Energy expects this new infrastructure to increase its EBITDA by up to US$350 million per annum solely from the cost savings generated from TRA coal mine, where it targets to achieve full capacity of 25 million tonnes per annum in the next few years, subject to Rencana Kerja Anggaran Biaya (RKAB) production quota approvals.
Apart from the cost savings, the new infrastructure will also generate new recurring earnings for Geo Energy as it could monetise the excess hauling and jetty capacities.