Geo Energy Resources Ltd. on Dec. 19 said it has increased the coal off-take it will supply from the Sungai Danau Jaya mine in Indonesia to Engelhart CTP (Singapore) Pte. Ltd. to 7 million tonnes, from 6 million tonnes previously.
The company will supply Engelhart 4 million tonnes of coal until Jan. 31, 2017, and 7 million tonnes from Feb. 1, 2017, through to Dec. 31, 2017, under the amended agreement.
As a result, Engelhart, which was formerly known as BTG Pactual Commodities (Singapore) Pte. Ltd., will double the prepayment to US$40 million.
Geo Energy has also set aside 1 million tonnes of coal per annum from the Sungai Danau Jaya mine to supply Indonesia's domestic market.
President Joko Widodo plans to increase the country's power generation capacity by 35 GW in 2019 to drive economic growth and to supply power to remote regions.
Meanwhile, Geo Energy received shareholder approval to complete the acquisition of a 98.73% stake in the Tanah Bumbu coal mine next to the Sungai Danau Jaya mine.
The acquisition will add another 44.4 million tonnes of coal to the company's total reserves.
Geo Energy expects to increase annual coal production and sales to 10 million tonnes by 2017 once TBR comes into production.