Geo Energy Resources Limited reported that its MBJ Integrated Infrastructure project has reached an 80% construction milestone, placing it on schedule for completion by June/July 2026. The development, undertaken through PT Marga Bara Jaya (MBJ), includes a 92km hauling road and jetty in South Sumatera. With commissioning preparations underway, truck trial tests are set to begin in early April 2026 to validate operational readiness across completed sections. These trials will assess gradient, load, braking, fuel efficiency and safety performance. To facilitate this phase, the Group has entered into two Coal Hauling Trial Services Agreement with PT Citra Andalan Mobilindo Cemerlang (“Shacman”) and China North Vehicle Corporation Limited (“CCCC-Norinco”) in January 2026.
Alongside construction progress, Geo Energy has secured two binding term sheets with third-party coal producers covering an aggregate haulage volume of approximately 9 million tonnes per annum. This development establishes a foundation for a recurring toll-based revenue stream while strengthening the positioning of MBJ as a regional logistics corridor. Combined with the 25 million tonnes annual haulage allocated for the Group’s TRA coal mine, the infrastructure is expected to handle up to 34 million tonnes annually. At full capacity of around 50 million tonnes of haulage per annum, the MBJ Integrated Infrastructure could generate up to an additional US$300 million in EBITDA annually within a few years.
The MBJ Integrated Infrastructure progress comes amid strengthening coal market conditions. The ICI4 coal price reached US$59.97 per tonne as of 13 March 2026, marking a 29.3% increase from the 4Q2025 average of US$46.37 per tonne. Demand for the Group’s coal assets, characterised by low ash and low sulphur content, remains supported by regional power and steel sectors. Meanwhile, Geo Energy has set a coal production target of 11.5 – 12.5 million tonnes for 2026, subject to final RKAB approvals from the Ministry of Energy and Mineral Resources.
Commenting on these developments, Mr Charles Antonny Melati, Executive Chairman & Chief Executive Officer of Geo Energy, said:
“Achieving the 80% completion milestone on the MBJ Integrated Infrastructure underscores our disciplined execution and moves us closer to unlocking the full value of our energy platform. At full capacity, MBJ alone is able to generate up to US$300 million in EBITDA per year for the Group. The binding term sheets with third parties for an aggregate haulage volume of 9 million tonnes per annum and the trial agreements with CCCC-Norinco and Shacman demonstrate the strong commercial interest in the Integrated Infrastructure and our readiness for operations. The recent uplift in coal prices further strengthens the Group’s earnings outlook as we progress toward our long-term growth vision of becoming a billion-dollar business and beyond.”