Geo Energy Resources Limited said on Apr, 01 2026 that its wholly owned subsidiary PT Geo Energy Investama has entered into a binding term sheet to acquire 50.61% of PT Mutiara Hitam Sukses, securing an effective 50.1% interest in PT Harfa Taruna Mandiri, which owns a hard coking coal concession in Central Kalimantan.

The purchase price for the 50.61% stake is set at IDR 911 million (about USD 54,000). In addition, Geo Energy will place a USD 10 million refundable deposit that will be repaid from future profits once first coal is produced and sold.

Completion is subject to legal, financial, tax, environmental and technical due diligence, verification of reserves and permits, confirmation of mining contractors and funding, and the signing of definitive agreements. The sellers have granted Geo Energy a 12-month exclusivity period to finalise the transaction; the company will also hold a first right of refusal over the remaining shares in Mutiara Hitam Sukses.

Harfa Taruna Mandiri holds a production-operation mining licence covering about 3,293 ha in North Barito, Central Kalimantan. The site contains an estimated 20 – 25 million tonnes of proved and probable hard coking coal reserves and targets annual output of 2 million tonnes. Based on recent market prices of USD 220 – USD 250 a tonne and estimated cash costs of around USD 110 a tonne, the project could deliver cash profits of roughly USD 220 million – USD 280 million a year, subject to confirmatory due diligence.

Geo Energy said the proposed acquisition will diversify its predominantly thermal coal portfolio into premium coking coal, extend mine life by 10 – 15 years and offer growth in Central Kalimantan with limited upfront capital outlay.

The company cautioned that the transaction remains subject to the satisfaction of all conditions precedent and that there is no certainty it will proceed. It will update shareholders on further developments.