Cokal expects production license for BBP project this quarter
Monday, February 8 2016 - 10:07 AM WIB
ASX-listed coking coal company Cokal Ltd said that it hopes to be able to obtain the IUP production/operation mining business license for its Borneo Bara Prima (BBP) coal project in Murung Raya Regency, Central Kalimantan, in the first quarter of this year.
The company, which owns 60 percent of BPP while the remainder 40 percent is held by its Indonesian partners, said in a recent statement that this was a slight delay from the initial target of the fourth quarter of last year.
Cokal said it has also applied for clean and clear certificate for the coal concession with the Directorate General of Mineral and Coal at the Ministry of Energy and Mineral Resources.
The BBP project is located in the North Barito Basin and covers 13,000 ha. BBP is directly adjacent to the Maruwai Coal Project (75% owned by BHP, 25% Adaro Energy) which hosts the Lampunut coking coal deposit in the Batu Ayau Formation immediately to the southeast of the eastern BBP project area.
Exploration activities to date have comprised an initial reconnaissance mapping program which has identified the presence of multiple coal seams from outcrops. Initial laboratory results indicate that coal from the southern part of the BBP Project is suitable for the PCI and Anthracite markets and is a bright coal with a low in-situ ash, low sulphur content, ultra-low phosphorous and high energy.
Given the size and location of the BBP concession and the limited exploration data to date, there is potential to discover one or more economically significant coal deposits, which may support a range of high quality products to the metallurgical coal export markets.
Editing by Reiner Simanjuntak