Indonesia: Geo Energy acquires two local mines; South Korean co to invest $1.1b in gas infrastructure

Surface coal mining Credit: Wikimedia Commons

Singapore miner GEO Energy Resources Ltd has entered into a conditional sale and purchase agreement with  Sunrise Wealth Success, an investment holding company incorporated in the British Virgin Islands, to wholly acquire Indonesia-based Borneo Bara Resources Pte. Ltd. Meanwhile, South Korean state owned company and a South Sumatra provincial government owned company (BUMD) have signed memorandum of understanding (MoU) to develop gas infrastructure in the South Sumatra region

Geo Energy spent $18m for Indonesian assets

Geo Energy has inked an agreement to acquire an Indonesian coal-mining concessionaire owned by Borneo Bara for $18 million to expand its operations and increase its coal reserves and production levels, the company said in statement on Feb 29.

Borneo indirectly holds an effective equity interest of 79.91 per cent in PT Parisma Jaya Abadi (PJA). The proposed acquisition will result in Geo Energy Resources owning nearly 80 per cent interest in PJA.

“This in turn would increase the company’s quantity of high calorific value coal reserves available for production,” it added.

South Korean co to develop gas infrastructure for $1.1b

A South Korean firm is planning to invest around $1.1 billion (Rp15.1 trillion) for developing gas infrastructure across the country, Chairman of the Investment Coordinating Board (BKPM) Franky Sibarani disclosed in a statement.

According to the MoU signed between the South Korean company and BUMD , both parties will cooperate to develop gas infrastructure, including the installation of 202-kilometers long gas pipeline in South Sumatera.

The South Korean company also plans to develop a gas power plant (PLGU) and a 118-km pipeline gas network in Bali.

South Korea has become one of major investors in Indonesia. Last year, South Korean firms invested $1.2 billion in Indonesia, up 7.6 per cent from previous year. In 2010-2015 period, South Korea’s investment in Indonesia reached $8 billion.

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