Cokal's Borneo Bara Prima project secures forestry permit
Monday, February 4 2013 - 02:30 AM WIB
ASX-listed global metallurgical coal group Cokal Limited said that the company has received the Ministry approval on its Forest Utilization Approval permit for exploration stage (IPPKH), covering its Borneo Bara Prima (BBP) metallurgical Coal Project.
With the permit, Cokal can now mobilise larger machinery and increase exploration drilling activity.
?The approval of the IPPKH from the Indonesian government means Cokal can now use large drills to finalise drilling in order to obtain its maiden JORC compliant resource? said Executive Chairman Peter Lynch.
?The issuing of the IPPKH allows us to now finalize the substantially completed Environmental Impact Statement (AMDAL) for the Project and to progress the upgrading of our IUP to Operation / Production status? he said. ?The next step forward for the BBP Project is to submit the EIS and then apply to have the mining licence upgraded to enable construction to commence?.
It said that the issuing of the IPPKH for BBP, and previously for its premier coal project Bumi Barito Mineral (BBM), would further confirm Cokals strategy in developing coking and other metallurgical coal open cut mines in Indonesia.
?We have always believed this is the right place to operate, because the system works here in Indonesia if you follow the rules? Executive Director, Pat Hanna said.
?We now have a coal project which is legally owned by Cokal (60% foreign ownership approved by Badan Koordinasi Penanaman Modal (BKPM) the Indonesian equivalent of the Foreign Investment Review Board), and the licence has no-outstanding legal ownership issues as it was approved by the Central Government and listed on the ?Clean and Clear List?
Hanna went on to say: ?Now that the Exploration Forestry Permit has been granted for the BBP project we can develop the necessary access tracks and logistics chain to support the implementation of high impact drills rigs. The high Impact drill rigs have the ability to drill much deeper and allow us to correlate the multiple coal seams we have already mapped and tested during the outcrop sampling. This is the next step towards developing a Maiden JORC Resource at the BBP Project?.
Editing by Adianto P. Simamora