Cokal flags lower Q1 output, completes coal shipment amid permit and approval delays

By Romel S. Gurky

Australia-listed Central Kalimantan Cokal Limited said regulatory uncertainty related to work plan approvals may affect coal sales and shipment schedules in the near term, as the company continues to ramp up operations at its Indonesian project.

Approvals for mining work plans, known as RKAB, remain under government review and are expected by early April, the company said, adding it could not yet quantify the impact on production volumes or shipment timing.

Separately, the company said its coal production in the first quarter is expected to fall below plan due to equipment availability issues, with corrective measures underway to improve fleet performance and support higher output in the second quarter.

Read also : Cokal advances haul road construction at BBM coking coal project

Cokal focuses on metallurgical coal and operates in Central Kalimantan through its flagship Bumi Barito Mineral (BBM) project, which produces low volatile hard coking coal used in steelmaking. The project entered commercial production in November 2022 and is currently in a ramp up phase, with a 2026 production target of about 420,000 tonnes.

The company said a blasting permit from regional authorities is in the final stage of review and is expected by late March, with initial blasting activities planned for mid April to improve mining efficiency.

Hauling operations are continuing but remain constrained by conditions on sections of public roads, with maintenance work ongoing to improve access and logistics.

Cokal said it completed a coal shipment to a domestic smelter on March 16 and is in discussions for another shipment targeted by the end of the month.

Editing by Alexander Ginting