Cokal eyeing metallurgical coal production start in 2013
Tuesday, February 14 2012 - 05:59 PM WIB
Australia-listed coal mining firm Cokal Limited expects to start metallurgical coal production from its Central Kalimantan mine in mid-2013 with initial capacity of 1-2 million tons per annum.
Chairman Peter Lynch in an interview broadcasted through the ASX recently said that the company hoped to get permits in place by the end of this year for its PT Bumi Barito Mineral (BBM) mine and will pave way for early production of 1-2 million tons per year or 65,000-165,000 tons per month.
Lynch said that currently 60 million tons of JORC inferred high quality metallurgical coal has been identified in just 8 percent of the 19900 hectares of tenement area that straddles the Barito river. ?We?re going to continue to expand the resource at BBM as we keep on drilling towards the east and the south and will expand drilling fleet to six from four,? he said, adding that it would take twelve more months to complete drilling the whole area and another four months to upgrade the resource.
Lynch said that due to BBM?s coal low ash, low sulfur and high CV characteristic, the company will pursue very early production stage which will be based on direct shipping as no washing will be required. ?It will be a very simple and low capital project,? he said, adding that the project will use local contractors.
Cokal has 60 percent shares in BBM through partnership with local owner.
Other than BBM, the company also has three more coal concessions at exploration stage in Central Kalimantan with drilling also planned in 2012.
Lynch said the company is well funded with cash at present stood at A$33 million.
Editing by David Mustakim