SINGAPORE (Yosefardi) – Geo Energy Resources Limited said its subsidiary, PT Sumber Bara Jaya (SBJ) has today signed a cooperation agreement with PT Bandar Laut Biru (BLB) for the management and operation of a port terminal for 15 years.
Under the terms of the cooperation agreement, SBJ has been appointed by BLB to manage and operate the port terminal, located in South Kalimantan, for public interest. Such services include, inter alia, (i) managing and operating the jetty as well as all facilities and infrastructure at the port terminal; (ii) construction of a new conveyor belt, crusher and related facilities; and (iii) providing periodic maintenance and repair of the aforesaid facilities.
The Group will also be constructing a new conveyor belt within the next two (2) years. This new conveyor belt will run approximately 800 meters into the Java Sea, hence allowing large barges to be loaded directly and not be subject to tidal conditions.
The strategically located port terminal, which has an existing maximum capacity to handle 4.8 million tons of coal per annum, will have its capacity increased to 22.8 million tons per annum upon the completion of the proposed conveyor belt, an increase of 3.75 times of its current capacity.
The Group will continue to look out for business expansion opportunities, which may include acquisitions, joint ventures and/or strategic alliances to expand its business operations and increase its coal production levels.