Cokal updates C. Kalimantan coal project
Friday, October 30 2015 - 10:47 AM WIB
EXPLORATION
BBM Project
BBM?s Production IUP covers an area of 14,980 hectares (ha), immediately adjacent to BHP Billiton?s Juloi tenement, straddling the Barito River and has multiple seams of high quality metallurgical coal.
GEOLOGICAL ACTIVITY
At the end of the last quarter all geological activities in East Block of BBM Area for the coal open pit exploration program had been completed and is up to date. Currently while waiting the Borrow and Use to be completed on BBM West Block Area, there has been no further geological work and expenditure has been kept to a minimum.
MINING ACTIVITY
During this quarter, an independent consultant had completed an estimation of coal reserves for BBM in accordance with the Indonesian Stock Exchange (BEI) requirements. According to the BEI requirements, a coal reserve statement should be reported in accordance with the Indonesian reporting standard ?Kode Pelaporan Hasil Eksplorasi, Sumberdaya dan Cadangan Batubara Indonesia? (KCMI ? 2011). The KCMI Code ? 2011 is very similar with Australian JORC Code 2004. As this does not comply with the ASX current requirement to use JORC Code 2012, Cokal is not in a position to report this estimate publicly. However, the work completed by the independent consultant was able to confirm the estimates used in Cokal?s Definitive Feasibility Study of the 1st phase of mining at 2mtpa.
ENVIRONMENTAL ACTIVITY
In order to keep expenditure to a minimum while waiting construction and mining to begin in BBM, revegetation of 90% of areas affected by exploration activity is now complete. Over 15,000 seedlings have been planted along access roads and on drill sites, comprising of some 5,000 trees and some 10,000 ground cover.
BBP Project
No exploration activity was conducted on BBP during this period.
AAM and AAK Projects
Cokal has a 75% share of Anugerah Alam Katingan (AAK) and Anugerah Alam Manuhing (AAM) projects also located in Central, Kalimantan, Indonesia. The AAK project area comprises of 5,000ha and the AAM project comprises of 10,000ha. Applications for the Exploration Forestry Permit (IPPKH) and Clean and Clear Certificates continue to be processed.
SNR Project
Applications for the Exploration Forestry Permit (IPPKH) and Clean and Clear Certificate continue to be processed.
PROJECT DEVELOPMENT
MANNING
A significant reduction in staff and employee numbers have been made to limit expenditure. All redundancy and reduction requirements have been carried in accordance with Indonesian labour regulations and Cokal has been assisted in this process with substantial help from both local and provincial labour departments
ENVIRONMENTAL REHABILITATION
Cokal continued last quarter to undertake environmental monitoring on site as part of ongoing baseline studies. Rehabilitation activities have been substantially completed throughout the previously disturbed exploration areas. Both ground cover and trees are becoming ?distressed? but still highly viable due to the extended dry season currently being experienced. Effort is now being expended into increasing nursery stocks both for the school planting programme and mine infrastructure replanting in the future.
APPROVALS & EXTERNAL RELATIONS
BBM PRODUCTION APPROVAL ADVANCES ? UPDATE
On August 12, 2012 Cokal received the ?Izin Pinjam Pakai Kawasan Hutan ? Operasi? or ?Borrow To Use Forestry Permit - Operation? for its BBM Project. This Forestry Permit is the last stage which will allow the Company to start construction and mining.
The Forestry Permit has been issued for an area covering 1,242 ha which enables the development of the port, haul road and the initial development of the mine site
We must thank both BKPM (Investment Coordinating Board) and the Ministry of Environment and Forestry for their assistance and help in providing this Permit as this was one of the first permits issued under the new investment regulation and therefore had some ?teething? problems due to the significant change in process from that previously used
BBM WEST BLOCK EXPLORATION IPPKH EXTENSION
Since the issue of the Borrow To Use Permit ? Exploitation (IPPKH-OP) Cokal has proceeded with the application for a Borrow To Use Permit ? Exploration for the Western Block of BBM and this application is currently with Planology Dept. at the Ministry of Environment and Forestry
BBP PRODUCTION APPROVAL ADVANCES ? UPDATE
The IUP production / operation (Mining Lease) licence is still with the Murung Raya Bupati for signing. Whilst expected to be issued during this quarter it is now expected to be issued in Quarter 4 2015.
Cokal has submitted its application for the Clean and Clear Certificate Exploration from the Director General of the National Mines Department formalising the previous award of Clean and Clear status.
TBAR EXPLORATION FORESTRY PERMIT
Cokal continued during the last quarter to progress the Exploration Forestry Permit for TBAR with the Central Kalimantan Provincial Government. Due to Cokal?s focus on fulfilling the administrative requirements to obtaining the IPPKH for BBM, together with workloads within the Provincial Forestry Department the site visit to the TBAR concession has been delayed until Q4 2015. (end of excerpt)