Geo Energy Resources hits snag as Indonesia bans coal exports for January
OPERATIONS at Geo Energy Resources have hit a snag as the Indonesian Ministry of Energy and Mineral Resources imposed a temporary ban on all coal export sales by Indonesian coal miners for the whole of January.
In a bourse filing on Monday (Jan 3), the company, which engages in mining, production and trading of coal, said the ban was due to concerns over critically low inventories at domestic power plants in Indonesia.
The low inventories could lead to widespread blackouts in the country, the group pointed out.
However, Geo Energy Resources said the export ban will not affect its overall production quota and production plans as stated in its work plan and budget for the year of 2022.
This is because the export ban is "temporary", it stressed, adding that the group had met its domestic market obligations last year.
Geo Energy Resources, meanwhile, stated that the Indonesian ministry had given it word that it is currently evaluating and reviewing the temporary ban, based on the realisation of the coal supply to domestic power plants companies.
The group is monitoring the situation and will make further announcements on the matter in due course, it added.
Shares of Geo Energy Resources RE4 were trading at S$0.32, down S$0.015 or 4.5 per cent as at 2.26 pm on Monday.
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