Cokal completes barging study for BBM

By Demas Simbolon

ASX-listed coal company Cokal Ltd said that it had completed an initial barging report for Bumi Barito Mineral (BBM) coal project in Central Kalimantan using Barito River as primary logistic mode.

The study identified a number of options among others to improve efficiency of barge use on Barito River and to increase number of operating days for the barging operation to deal with the changes of river water levels in upstream areas, and indicated the potential significant reduction in lost barging time due to the low and high river levels in the upstream areas.

?The Barge Scoping Study is a key milestone in commencing production from the BBM Project in Central Kalimantan as soon as practical. The BBM Project is located adjacent to the Barito River and the Pre-Feasibility Study can now be initiated.? Cokal Executive Chairman, Peter Lynch said.

Cokal Managing Director Jim Middleton said ?This conceptual analysis of the logistics chain is one of the fundamental building blocks for developing a viable and efficient system for getting coal from the project to the customer. Opening up this underdeveloped metallurgical coal basin is an exciting opportunity, and this positive outcome continues to build on the Coal Quality and Resource volume at the BBM Project already announced."

The BBM covers an area of 19,920 hectares. Cokal has previously confirmed high quality premium metallurgical coal at its BBM project and has announced a maiden Inferred Resource of 60 million tons in the project.

Editing by Adianto P. Simamora