Geo Energy Resources has announced that its US$150 million Integrated Infrastructure project, which includes the construction of a 92km hauling road and a jetty in South Sumatera and Jambi Province, Indonesia, has received full insurance coverage from the China Export & Credit Insurance Corporation (Sinosure).
Sinosure, a state-owned Chinese insurance company specializing in export credit, plays a vital role in supporting international projects involving Chinese enterprises by providing risk coverage. This endorsement by Sinosure secures credit risk insurance for the project, facilitating financing for the Engineering, Procurement, and Construction (EPC) contractors and enabling the construction phase to progress confidently.
The project, known as the MBJ Project, is a key element in Geo Energy’s growth strategy to improve logistics efficiency and boost coal production capacity at its TRA coal mine. Upon completion, the infrastructure development is expected to deliver significant cost savings, with over US$10 per tonne in transportation costs. Additionally, the project aims to increase the TRA coal mine’s production capacity to 25 million tonnes per annum and create new revenue streams through infrastructure operations, including third-party access to the road and jetty facilities.
Construction is already in full swing, with land clearing and cut-and-fill work having begun in August 2024. Following the groundbreaking ceremony in November, work has accelerated, with additional equipment mobilized to speed up the development of the hauling road and jetty. The project remains on track for completion in the first half of 2026, in line with Geo Energy’s ambitious schedule.
Charles Antonny Melati, Executive Chairman and CEO of Geo Energy, expressed confidence in the project’s success. “The support from Sinosure reinforces our strong collaboration with CCCC First Harbor Consultants and Norinco International, our trusted EPC contractors. Their technical expertise and commitment, alongside our own dedication, ensure the project stays on track and within scope.”
Melati also emphasized the strategic importance of the MBJ Project. “This infrastructure initiative will significantly enhance the Group’s operational efficiency and competitiveness. We are committed to keeping our stakeholders informed as we reach key project milestones and look forward to the positive impact this development will have on our long-term growth and shareholder value.”
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