Geo Energy MBJ project 80% complete, July finish on track

Truck hauling trials will begin in April.

Geo Energy Resources Limited’s MBJ integrated infrastructure project in South Sumatera has reached 80% completion and remains on track for completion in June or July 2026, as the group secured binding term sheets for nine million tonnes per annum of third-party haulage.

The project, under PT Marga Bara Jaya, includes a 92-kilometre hauling road and jetty. The group will begin truck hauling trials in April 2026 on completed sections to test gradient, load, braking, fuel efficiency, and safety.

Geo Energy signed coal hauling trial services agreements with PT Citra Andalan Mobilindo Cemerlang and China North Vehicle Corporation Limited in January 2026 to support the trials, according to a press release.

The group has secured two binding term sheets with third-party coal producers for an aggregate haulage volume of about nine million tonnes per annum.

Combined with 25 million tonnes allocated to its TRA coal mine, this brings secured throughput for the MBJ infrastructure to up to 34 million tonnes per annum.

The company said it is continuing commercial discussions with other counterparties.

At full capacity of about 50 million tonnes per annum, the MBJ infrastructure is expected to generate up to $384m (US$300m) in annual EBITDA within a few years.

Coal prices have increased, with the ICI4 index at $76.76 (US$59.97) per tonne as of 13 March 2026, up from the fourth quarter 2025 average of $59.35 (US$46.37) per tonne.

Market trades for 4,200 GAR coal for March and April cargoes ranged from $78.08 (US$61) to $81.92 (US$64) per tonne.

The group has set a coal production target of 11.5 million to 12.5 million tonnes for 2026, subject to final RKAB approvals from the Ministry of Energy and Mineral Resources.

Based on current prices, this production range is expected to generate between $217.6m (US$170m) and $256m (US$200m) in EBITDA from coal sales, excluding contributions from infrastructure and marine logistics.

(US$1 = SG$1.28)

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