A $13m integrated infrastructure project was also signed.

Geo Energy Resources Limited has increased its stake in PT Marga Bara Jaya (MBJ) by acquiring an additional 25.70% of its issued shares, solidifying its position as the majority shareholder with a total ownership of 58.70%. This acquisition grants the former majority control over MBJ's board of directors.

In a statement, Geo Energy said it also signed a $17.56m (IDR213.2b) contract with China Communications Construction Company Limited (CCCC) to develop and construct an Integrated Infrastructure comprising of a 95-kilometre hauling road and river jetty in South Sumatra owned by MBJ.

The project, to be executed by the Chinese firm's Indonesian subsidiary, will support the growth of the company's TRA coal mine, create a captive market for local resources, and diversify Geo Energy's revenue stream into infrastructure.

A downpayment of $6.66 m (IDR81b) will be made to fund the mobilisation of manpower, equipment, and materials. CCCC, meanwhile, will issue an unconditional down payment bond of the same amount to MBJ.

"Developing and controlling our own logistics through the Integrated Infrastructure will be a transformational component of our business roadmap, designed to reduce transportation time, generate substantial cost savings in our logistics operations and progressively increase production up to 25 million tonnes per annum for our TRA coal mine, from the current production of around 2.5 million tonnes expected for 2024," said Geo Energy Executive Chairman and CEO Charles Antonny Melati.

The company aims to complete the infrastructure between end-2025 and early-2026.

$1 = IDR12,158.3