You are here
Geo Energy secures US$40m in prepayment for 2018 supply of coal
INDONESIAN coal miner Geo Energy Resources has agreed to supply Engelhart CTP (Singapore), or ECTP, at least 7.5 million tonnes of coal next year, for US$40 million in prepayment.
Under the agreement, made through its wholly owned subsidiary Geo Coal International, Geo Energy will deliver thermal coal of 4,200 kcal per kg from its SDJ coal mine.
Geo Energy had in July 2016 entered into a "life of mine" agreement with ECTP to supply thermal coal over the life of the SDJ coal mine, subject to terms of the agreement.
It has since secured two coal offtake agreements with ECTP to supply four million tonnes by January 2017, and an additional seven million tonnes by December 2017.
Geo Energy said that it has fulfilled the terms of its coal offtake agreement for 2017.
Its chief executive Tung Kum Hon said that the additional prepayment from ECTP for 2017 is a testament of demand for SDJ coal and the group's ability to deliver.
"SDJ's low sulphur and ash content coal has continued to generate great demand from major Chinese power plants," he said in a statement. "ECTP plays a major role in distributing our brand of coal in China, and will also efficiently map out demand in other regions such as South-east Asia."
Geo Energy is also in the process of finalising the offtake prepayment and mining services contracts for its newly acquired Tanah Bumbu Resources (TBR) mine, he added.
Separately, the group has on Dec 11 appointed former Indonesian Chief Justice and Minister of Defence Mohammad Mahfud MD as a special adviser to the group, advising on legal, regulatory and other matters in Indonesia.
It also on Dec 13 appointed M Ryaas Rasyid as the president commissioner of PT Geo Energy Coalindo, to "provide greater perspective and insights" to its operations in Indonesia.