Cokal finds additional premium coking coal seam

By Demas Simbolon

ASX-listed firm Cokal Ltd recently announced it has identified an additional seam that contains high quality premium coking coal at its Bumi Barito Mineral project in Central Kalimantan. The new J seam, the uppermost package of nine seams mapped to date, overlies the B, C and D seams which formed the basis of JORC compliant 60 million tons coal resource announced in December 2011.

?All of the core samples which have intersected the seam have demonstrated excellent coking potential with Crucible Swell Numbers (CSN) of 9 or greater on even the raw coal results,? Cokal CEO Jim Middleton said, adding that J seam coal quality includes low ash, low sulphur, low phosphorous and low moisture, with low inherent ash and direct ship potential.

Cokal currently has four, man portable rigs active on the BBM project, two of which have been focused on the J seam. A further two are active on the Borneo Bara Prima project in Murung Raya Regency Central Kalimantan.

The BBM project, covers an area of approximately 19,920ha immediately adjacent to BHP Billiton?s Juloi tenement, is planned to start production as early as possible with initial output expected to reach between one and two million tons per annum direct ship operation.

"We are well advanced on completing our Feasibility Study and associated Environmental Impact Studies. These are critical elements which must be completed and approved in applying for the necessary mining approvals for the project.? Middleton said.

Editing by Er Audy Zandri