Cokal's BBM project receives Production IUP
Wednesday, May 1 2013 - 04:49 AM WIB
ASX-listed Cokal Limited reported on Wednesday that its Bumi Barito Mineral (BBM) has received a production / operation mining business permit (IUP) approval from the administration of Murung Raya Regency.
The Production IUP covers among others an area of 15,000 hectares and full development of the Eastern Block of BBM 6 million ton per year in 20 years with two 10 year extensions permitted.
With the permit, the exploration is also permitted on remaining area but all protected and moratorium forest areas should be excluded from the Production Mining Lease area.
Cokal Executive Chairman Peter Lynch said ?this now completes the mining approvals required for BBM production and places the company in a very sound position to start construction of the project before the end of the year."
"The company is now focused on upgrading the forestry exploration permit to a production permit. This is scheduled to be completed by the end of 3rd quarter 2013 and is the final major approval required to commence construction of the project."
He said that Cokal expected to be barging coal down the Barito River and delivering a premium coking coal to the nearby Asian steel markets by the 1st half 2014.
Editing by Adianto P. Simamora