Through its Indonesian subsidiaries, BIR owns SDJ coal concession in South Kalimantan, Indonesia.
Spanning across an area of 236.1 hectares, the mine is said to host coal reserves with an average calorific value of 4,038kcal/kg.
With this acquisition, Geo Energy’s coal reserve bank will increase to more than 40 million tons from the current 11 million tons.
Geo Energy executive chairman Charles Antonny Melati said: "We believe that this concession offers good long term value and will not only allow the Group to possess a steady bank of coal deposits to monetise in the years to come, it also allows the Group to expand its footprint into South Kalimantan."
In July, the company inked mining services contract and mining cooperation agreement with Mandiri Makmur Citra Tambang for a South Kalimantan concession.
Geo Energy also agreed to buy coal at $35.35 per ton from the concession owner.
Melati said: "The Group has put in place a long term plan which seeks out viable coal concessions for the two segments in our business model.
"We believe that this will allow us to diversify our product range in addition to maintaining the operational excellence and efficacy that we have come to be known for."
