Geo Energy to buy stake in coal-rich firm

INDONESIAN coal mining firm Geo Energy Resources plans to buy a stake in a company with mining licences for two coal concessions in South Kalimantan, in a move which could boost its coal production dramatically.

The transaction will cost it a consideration of US$55 million and add at least 30 million tonnes to Geo Energy's current 11.1 million tonnes of reserves in its concession in East Kalimantan.

The company on Wednesday agreed conditionally to buy a stake in Singapore-incorporated Borneo International Resources Pte Ltd from an Ind…