Cokal continues talks on financing of BBM coking coal project

By Romel S. Gurky

ASX-listed coking coal firm Cokal Limited said it continues to engage with several parties on financing options to take its Bumi Barito Mineral Project (BBM Project) in Central Kalimantan to production.

Cokal said in a statement last week that technical and financial team continue to support potential investors who are conducting due diligence on the BBM coking coal mine. ?The parties involved include mining contractors, trading and financing houses,? the company said in the statement.

The process involves project due diligence and ongoing negotiations on the various structures of financing.

BBM?s Production IUP covers an area of 14,980 hectares (ha), immediately adjacent to Indomet?s Juloi tenement, straddling the Barito River and has multiple seams of high quality metallurgical coal.

Elsewhere, Cokal announced that as part of the refocusing of the group on the core Indonesian assets, the transfer of the management and administration functions to Indonesia is now complete. This has already led to increased efficiencies and reduced costs without any significant ?bedding in? issues being encountered .

Editing by Reiner Simanjuntak