Cokal finally receives forestry permit for BBM project
Thursday, August 13 2015 - 02:15 AM WIB
ASX-listed coking coal company Cokal Limited announced Thursday the Indonesian Minister for the Environment and Forestry has finally issued the ?Borrow and Use of Forest Area Permit? (also known locally IPPKH) for its 60 percent owned Bumi Barito Mineral Coal Project (BBM), located in Central Kalimantan.
?The issuance of the Forestry Permit now concludes the final approval process necessary to allow the company to start construction and mining. In addition to the forestry permit, Cokal has an approved mining license and full environmental approval for up to 6Mtpa of coal extraction,? Cokal said in a statement.
The company explained that an Initial area of approximately 1,242 ha has been approved by the Forestry Department covering the operation of the port, haul road and the initial mine site. In accordance with standard Mining Department practice, the initial operational area is reviewed by the Department and extended as required to meet the planned mine development.
Cokal?s Chairman Peter Lynch commented: ?With the delays in finalizing the permitting process, behind us, we can now look to the future and focus our efforts on the delivery of the BBM project.?
The permit was delayed due to the change of government last year and the creation of a combined forestry / environmental ministry. A new one-stop integrated service (PTSP) under the Investment Coordinating Board (BKPM) was launched on January 26, 2015 by President Joko Widodo to simplify investment licensing procedures for foreign-owned companies like Cokal and improve ease of doing business, which in turn could bolster economic growth. With the new service, the BKPM has taken over 134 permits from 22 ministries and institutions. These permits include some of those that have often been stumbling blocks for investment, such as land-use permits and environmental impact analysis permits from the Environment and Forestry Ministry.
Editing by Reiner Simanjuntak