Indonesian miner buys out two local shipping firms

Indonesian mining company Geo Energy Resources is set to enhance its coal shipping capabilities by acquiring a 51% stake in two local shipping firms, Trans Maritim Pratama (TMP) and Bahari Segara Maritim (BSM). The acquisition, valued at $127.5 million, is contingent upon shareholder approval and will be financed through the company’s resources and new share issuance. This strategic move aims to bolster Geo Energy’s operational efficiency in coal transportation.

Details of the Acquisition

Geo Energy’s acquisition of TMP and BSM will significantly expand its logistics capabilities, as the two firms collectively operate 27 tugboats and 27 barges. These vessels are essential for transporting coal, a key commodity for the company. The decision to invest in these shipping firms aligns with Geo Energy’s broader strategy to streamline its supply chain and enhance its coal distribution network.

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The total cost of $127.5 million reflects the company’s commitment to strengthening its position in the coal industry. The financing plan includes utilizing the company’s existing resources alongside the issuance of new shares, which will help facilitate the acquisition process. This strategic investment is expected to improve operational efficiencies and reduce reliance on third-party shipping services.

Geo Energy Resources, listed in Singapore, currently holds four mining concessions in Kalimantan and South Sumatra. Additionally, the company has a 49% equity stake in Internasional Prima Coal in Kalimantan. This acquisition marks a significant step in Geo Energy’s growth trajectory, positioning it to better serve its coal customers while optimizing its logistics operations.