Cokal signed infrastructure development MoUs in Central Kalimantan
Tuesday, March 13 2012 - 02:38 AM WIB
Australia-listed coal firm Cokal Limited has signed Memorandums of Understanding (MoU's) to develop two river ports and two small scale coal-fired power stations in the regency of Murung Raya, Central Kalimantan in Indonesia.
Cokal chairman Peter Lynch said in a statement that the signing of the two MoU's with the Murung Raya Regency was aimed at enabling the company to start exporting coal from the region by mid-2013.
Detailed Agreements arising from these MoU's are currently being finalised.
Cokal Managing Director & CEO Jim Middleton and Director Domenic Martino attended the signing ceremony with the Head of the Murung Regency Government Willy Yoseph, in the regency capital, Puruk Cahu, which was also attended by the Head of the Local House of Representatives.
Willy Yoseph said during the ceremony that he was very happy to have Cokal, with its experience and skills, committed to working with the Regency to develop infrastructure to mutual benefit.
Cokal has previously confirmed high quality premium metallurgical coal at its 60 percent owned Bumi Barito Mineral (BBM) project in Central Kalimantan, announcing a maiden Inferred Resource of 60 tons of Metallurgical Coal comprising of 60 percent coking and 40 percent PCI as of December 2011.
The Inferred Resource covered 8 percent of BBM's 19,920 ha concession land, which is located immediately adjacent to BHPBilliton's Juloi tenement.
Lynch said that Cokal's first MoU with the regency was to develop two river ports for coal stockpiling and barge loading on the Barito River to service the needs of BBM as well as other future Cokal projects in the regency.
He said that the second MoU is for the potential development of two small scale coal-fired power stations (5 -10MW) in the regency, which could service the needs of proposed Cokal mines in the area as well as providing benefits to the local community.
Middleton announced that the Regency Government's Development Corporation would be a joint venture partner with Cokal, and is committed to provide assistance for this infrastructure development.
"This co-operation and assistance will help us to quickly move into the production phase. The Regency Government is enthusiastic about the mine development as it brings jobs, education and prosperity to the region. Cokal has committed to a high level of community engagement through an effective community social responsibility program focused on education and training, employment and local infrastructure development," said Middleton, adding that concept studies for the port infrastructure and power stations will commence immediately, funded by Cokal.
"Subject to a positive outcome of the studies, Cokal will be examining a range of options whereby this vital infrastructure may be project financed," he said.
Kalimantan is located favourably in a geographic sense, being on the doorstep of the world's biggest and strongest growing markets.
Lynch commented that the MoU's and the corresponding planned Agreements, are part of expediting planned metallurgical coal production in this high quality coal basin, while providing significant benefits to the local community.
Editing by Er Audy Zandri