Cokal secures key exploration forestry permit
Wednesday, October 10 2012 - 01:29 AM WIB
Global metallurgical coal group Cokal Ltd said that it has received approval for exploration forestry permit from the Ministry of Forestry covering its premier Bumi Barito Mineral (BBM) metallurgical coal project in Central Kalimantan.
The Australia-listed company said in a statement was critical for the use of larger capacity equipment, which will allow for high impact exploration drilling activity of its Indonesian coal targets.
Cokal Executive Chairman Peter Lynch said the company expected to complete and announce the results of its BBM pre-feasibility this month and has also substantially completed its Environmental Impact Statement (EIS). The pre-feasibility study provides a number of options for developing an open-cut coal mine in BBM and the associated infrastructure and coal transportation.
?The approval of the forestry permits from the Indonesian government means Cokal can now use large drills in order to convert the previously announced 200 ? 350Mt exploration target to JORC compliant coal resources,? he said.
?This permit allows Cokal to develop a roadway system within BBM for better access of people, supplies and medical care. As well, Cokal will commence survey of mine site infrastructure including the barge loading port, mine offices accommodation and maintenance workshop.
?The exploration forestry permit and the EIS approval are also critical pre-requisites for applying to convert the BBM exploration IUP license into a production IUP license. Cokal?s EIS has made significant progress, allowing the company to move quickly towards applying for the mining licence.?
Executive Director, Pat Hanna said that Cokal was one step closer of obtaining the Environmental Approval and a Mining License.
BBM covers an area of 19,920 ha, immediately adjacent to BHPBilliton?s Juloi tenement, straddling the Barito River, exploration efforts to date have confirmed 77Mt of Indicated (7Mt) and Inferred (7OMt) JORC resources which is 80 percent premium coking coal and 20 percent high quality low volatile PCI.
Meanwhile Cokal continues to make progress on its other IUP, Borneo Bara Prima (BBP), covering an area of 13,050 ha, located adjacent to BHPBilliton?s Maruwai tenement.
Cokal Managing Director Jim Middleton said the company expects to release the BBM pre-feasibility Study in the near future.
Editing by Reiner Simanjuntak