Cokal to start feasibility study this year-end

By Cepi Setiadi

ASX-listed Cokal Limited (Cokal) expects to have started the feasibility study of its coking coal project by the end of this year through its subsidiary PT Bumi Barito Mineral (BBM) in Central Kalimantan.

"We are currently now on the pre-feasibility study stage and will be doing the actual feasibility study at the end of the year," Executive Director of Cokal Pat Hanna told Petromindo.com, adding that the company?s crews are working hard and already have multiple studies on the way.

The company plans to start construction stage early next year which is estimated to take about six months.

"By the second half of next year, we should be able to commence production at the level of 1-2 million tons per year," he said.

By year three the company will gradually ramp the production up to a level of 5-6 million tons per year.

Cokal, he said, has spent about US $30-40 million of capital expenditure to complete acquisition process, exploration work, legal process and setting up offices.

"We now have a fully operating office in Puruk Cahu where we have about 120 people working for us. We've actually grown quite quickly and that's been very good, we have achieve a lot of success in a very short period of time," he said.

Editing by Er Audy Zandri