Cokal expects imminent production from new coal operation
Friday, June 30 2017 - 02:18 AM WIB
ASX-listed coal firm Cokal Limited said Friday that preparations are advanced, with coal production imminent from BBM Anak, a newly targeted mining area within the company?s 60 percent-owned Bumi Barito Mineral (BBM) PCI coal development project in Central Kalimantan Province.
Cokal said in a statement that BBM Anak is a separate and additional project to the BBM PCI Project as BBM Anak product coal has volatile matter greater than 12 percent. BBM PCI Project participants previously agreed to limit the BBM PCI Project to coal products with less than 12 percent volatile matter.
Cokal said it is establishing a small scale coal mining operation, which will produce a high calorific-value, high-volatility PCI coal. Product coal will be sold to local coal companies for blending with their lower quality coals. The location of the mine is in close proximity to the Barito River requiring a very short haul (around one kilometer) to the stockpile area.
The company said it has acquired the relevant regulatory approvals including the mining, environmental and forestry approvals from the various Indonesian Government Departments.
Cokal also said it has successfully completed negotiations with the landowners and both parties are pleased with the outcome. As well, Cokal has negotiated terms for the supply of fuel, for land-clearing contractors and for a small fleet of mining and barging equipment.
Cokal said it expects to build a stockpile of coal beside the Barito River in July or August of this year and commence barging to local coal producers downstream on the river.
Cokal?s on-site technical team has prepared comprehensive mine-plans, mining schedules and financial budgets, in accordance with internationally accepted mining standards. Cokal?s technical team has extensive experience in coal exploration and mining in Indonesia and throughout the world and is highly confident in the technical and financial merits of BBM Anak. However, under current disclosure rules, there is not yet the level of assurance required to disclose the anticipated operational metrics or financial performance of BBM Anak. Cokal said it looks forward to providing further details as and when we are able.
?Development of the BBM PCI Project remains a focus, with site activities at BBM Anak contributing to the early development works at BBM PCI,? Coal said.
The company said the expected cash flow from BBM Anak will assist Cokal to continue to fund development of the BBM PCI Project, with production of an export quality Premium PCI coal forecast for December/January in accordance with Cokal?s announcement on May 24, 2017.
Meanwhile, Cokal?s independent consultants continue to work on producing a Reserves Statement in accordance with the JORC Code and a Valmin evaluation report on Cokal?s assets. These reports have been delayed by a few weeks due to national holidays in Indonesia in the past month.
Editing by Reiner Simanjuntak