By Alexander Ginting
ASX-listed mining firm Cokal Limited (ASX:CKA) said it is expediting the development of its Bumi Barito Mineral (BBM) Coking Coal project on the back of Covid-19 pandemic.
The company said the site preparations for the construction of the coking coal project have commenced. It has undertaken these activities (preparation works), subsequent to the receipt of a binding commitment from investors to provide Cokal with a US$20 million debt facility, which is sufficient to fund BBM project development.
BBM is located in the Central Province, Kalimantan Indonesia with an area of approximately 1,500 hectares. Delivering the BBM Coking Coal Project will allow Cokal to assess the next phase of its growth strategy with an aim to become a multi-project coal producer focussed on the Central Kalimantan region, it said.
The development strategy for BBM focuses on minimizing the upfront capital required to achieve first-production. Cokal is accomplishing this through:
- The utilization of mining contractors for mining operations;
- Contracting the transport logistics to third-party operators including the transportation of product coal from mine-to-port and barging down the river; and
- Teasing down-river coal stockpiling facilities for transport efficiencies.
Currently, Cokal has approximately 20 staff on-site at BBM preparing the site for the initial construction work to develop Cokal's flagship BBM coking coal project.
Read also : Cokal receives binding commitment for funding of BBM project
Supporting Infrastructures
Reclamation of overgrown land has commenced along the existing, newly licensed, coal transport road. The future work program includes completion of clearing the roadway, upgrading sections of the roadway, and repairing and replacing culverts and bridges. The first batch of road reconstruction materials has been delivered to the site.
Cokal said it has secured the lease of an existing jetty in the Bomban area (at the end of the coal transport road), including approximately 10 hectares of surrounding land.
The jetty is ready for use, and the surrounding land will be utilized for stockpiling of product coal, fuel storage, delivery of mining equipment and support infrastructure, it said.
The jetty has been leased as an interim measure over the next 12 months to support expedited project development. Cokal will develop its own jetty in due course to reduce transport costs.
Current activities being undertaken include preparing infrastructure including fuel tanks, site offices and staff camp at the Krajan location on the Barito River within the BBM mining lease.
Editing by Roffie Kurniawan
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