Geo Energy Resources inked two deals with Indonesian coal-mining firm

Its subsidiary will provide services in 150 hectares of concession area.

According to OSK, Geo Energy Resources has inked two deals with Indonesia’s coal-mining company PT Parisma Jaya Abadi (PJA).

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The first deal involves Geo’s subsidiary PT Mitra Nasional Pratama (MNP) providing services to PJA in 150 hectares of concession area.

The second deal is a mining-cooperation agreement in which another subsidiary, Geo Coal International Pte Ltd (GCI), and PJA have agreed to work together to produce coal from the area exclusively sold and delivered to GCI.

Exploratory activities by PJA have guaranteed that the potential coal contained in the specified work block is roughly 420,000 tonnes with calorific value of at least 6,800 kcal per kg.

GCI will make upfront payment of USD2.94m or USD61.55 per tonne of coal with calorfic value in excess of 6,800 kcal/kg and USD71.55 per tonne of coking coal.

The agreement is effective until the production and sale of coal to GCI reaches 420,000 tonnes or mining activities are no longer economically and technically feasible