Cokal on track to commence production by second half year 2015

By Cepi Setiadi

ASX-listed Cokal Limited claimed that its coking coal unit, Bumi Barito Mineral Project (BBM), in Central Kalimantan is on track to commence production by second semester of 2015.

Endah Ari Cakrawati, Investor Relations of Cokal told Petromindo.com on Thursday that the company is still eyeing two million ton production in the first year of production. "But gradually we will increase our production up to 5 million tons," she said.

She revealed that currently the company is focusing on barging preparation. "We are cooperating with Meratus Advance Maritime (MDM) for barging activity," she said."Currently we are preparing the barging activity, and everything is on the right track."

The project covers an area of about 15,000 ha and is immediately adjacent to BHP Billiton?s Juloi tenement, straddling the Barito River. The low ash coking coal will be produced from shallow open-cut mining extraction using trucks and shovels. The coal will be brought about 700 kilometres down the Barito River using river barging techniques that have been tried and proven on similar rivers in many countries including the USA and Brazil.

Cokal has recently entered into a 50:50 joint venture (JV) agreement with Meratus Advance Maritime (MDM). The JV will own and manage the shallow river barges and tugs designed specifically for BBM. MDM is part of the Meratus Group which has operated in Indonesian shipping since 1957 and has provided barging and shipping services to a number of the major Kalimantan coal operations. MDM has also worked on the Barito River over a number of years. BBM has defined total resource of 264 metric tons (mt) comprised of 10.5 mt of measured, 13.5 Mmt of indicated and 240 mt Inferred Resources in accordance with the JORC Code 2012.

Editing by Johannes Simbolon