GEO ENERGY RESOURCES LIMITED
| Annual Report 2014
9
of these additional coal reserve ranges from
4,000 to 4,200 GAR, it meets the requirements
of power plants in China, India and Indonesia,
hence these reserves will diversify our product
range and put us in a better position to cater to
regional demand.
As part of the strategy to transform the
Group from a coal miner and mining service
provider to an integrated coal mining group
with upstream and downstream capabilities, in
October, we entered into an agreement through
our subsidiary, PT Sumber Bara Jaya with PT
Bandar Laut Biru (“BLB”) for the management
and operation of a port terminal for 15 years.
The agreement will bring us additional revenue
stream through coal handling for third party
coal miners while concurrently taking on BLB’s
existing portfolio of customers. It will also
allow us to gain better certainty over future
SDJ’s logistics schedule, and lower our own
logistical and operational expenses. As a coal
port operator, we expect to have the exposure
to a wider network of customers and additional
opportunities for coal trading and the marketing
of third parties’ coal.
In line with Indonesian Government’s overall
economic plan to have at least an additional
35,000 megawatt of power within the next four
years, in early 2015, we have entered into a
cooperation agreement with China Nuclear
Industry 22nd Construction Co., Ltd, a major
Chinese State-owned Enterprise, for the
construction, management and operation of
coal-fired power stations in Indonesia. The
partnership will potentially create demand for
our coal to the power plants in future.
In 2014, the Group has been awarded as the
Runner-Up of the 15th SIAS Investors’ Choice
Award – Most Transparent Company Award
(MTCA) 2014, in the Chemical & Resources
Category. This is the second consecutive
year that the Group won this award, and
it is an endorsement of good faith in the
