Geo Energy Resources Limited has reached a significant milestone with its MBJ Integrated Infrastructure project in South Sumatra. The project, which includes a 92-kilometer hauling road and a jetty, is now 80% complete and remains on schedule for full completion by June or July 2026.

Truck Trials Set to Begin in April

To prepare for operational readiness, truck hauling trials will commence in early April 2026 on completed sections of the hauling road. These trials will assess key parameters such as gradient, load capacity, braking efficiency, fuel consumption, and safety. This initiative follows the signing of two Coal Hauling Trial Services Agreements with PT Citra Andalan Mobilindo Cemerlang (Shacman) and China North Vehicle Corporation Limited (CCCC-Norinco) in January 2026.

The jetty construction, which is part of the MBJ project, is also progressing well and is nearing completion. Once fully operational, the integrated infrastructure is expected to handle 50 million tonnes of haulage annually, generating up to an additional US$300 million in EBITDA per year for Geo Energy.

Binding Agreements Secure 9 Million Tonnes of Haulage

Geo Energy has secured two binding term sheets with third-party coal producers for a total haulage volume of approximately 9 million tonnes per year. This marks a critical step in the company’s strategy to establish recurring, toll-based revenue streams. Alongside the 25 million tonnes of annual haulage allocated for its TRA coal mine, the Group has secured up to 34 million tonnes of annual throughput for the MBJ infrastructure. Further discussions with additional partners are ongoing.

Coal Prices Surge Amid Geopolitical Tensions

Amid global geopolitical tensions, coal prices have seen a sharp increase. The ICI4 coal price rose to US$59.97 per tonne on March 13, 2026, up 29.3% from the fourth-quarter 2025 average of US$46.37 per tonne. This surge has bolstered the outlook for coal producers, including Geo Energy, whose low-ash, low-sulfur "eco-coal" remains in demand among regional power and steel sectors.

Production Targets for 2026

Following its record-breaking coal production of 12.5 million tonnes in 2025, Geo Energy has set a target of 11.5 to 12.5 million tonnes for 2026, pending final approvals from Indonesia’s Ministry of Energy and Mineral Resources (MoEMR). At current coal prices, this production level could contribute between US$170 million and US$200 million in EBITDA from coal sales alone, excluding contributions from infrastructure and marine logistics.

Leadership Commentary

Highlighting the significance of these developments, Charles Antonny Melati, Executive Chairman and CEO 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."

As Geo Energy approaches the final stages of the MBJ project, the company is well-positioned to capitalize on rising coal prices and expand its revenue streams through its growing infrastructure portfolio.

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