Cokal updates C. Kalimantan coal project
Monday, November 3 2014 - 01:36 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.
Highlights
? Detail geological mapping of proposed open pits Pit 1 nearing completion at BBM East Block.
? Detailed geological mapping of proposed open pits Pit 2 continuing
? Detailed and updated geological model evaluation of B, C and D seam group in proposed open pits Pit 1 and Pit 2 underway.
? Reclamation substantially completed for exploration drill and campsites.
DETAIL SURFACE MAPPING
During the Quarter further detailed geological survey mapping in and around proposed BBM open pits Pit 1 and Pit 2 was conducted by Cokal?s team of geologists. Analytical results of the outcrop samples have confirmed sufficient quantities of a low ash (<7%) coking coal for the initial 2 years of mining as scheduled in BBM?s Definitive Feasibility Study.
Detailed geological mapping in Pit 1 (with total length of 3,600m) recorded a total of 147 coal outcrops with thickness ranging from 0.12 ? 1.98 m.
Detailed geological mapping in Pit 2 (with total length of 3,900m) recorded a total of 42 coal outcrops with thickness ranging from 0.08 ? 1.88m. Mapping of outcrops in Pit 2 is still in progress.
Detail outcrop mapping of Pit 2 is continuing into the 4th Quarter 2014.
REHABILITATION OF EXPLORATION SITES
During this period the geology team have also been involved in reclamation works on exploration affected areas, including flying camps, drill sites, road access and on other areas disturbed by exploration activities. Young trees of native species have been taken from Cokal?s nursery of over 5,000 seedlings and planted across BBM East Block which had been disturbed by exploration activity over the past 3 years. The Forestry Department of the Provincial Government of Central Kalimantan has expressed their appreciation and support for Cokal?s efforts in forestry restoration at such an early stage of the development of the mine.
BBP Project
No exploration activity was conducted on BBP during this period as all drilling and exploration resources have been deployed to BBM to assist in the delineation of the coal seam in the KLM area.
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. 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
EARLY WORKS DETAILED ENGINEERING & CONTRACUAL DOCUMENTATION
To maintain the project schedule timeline a number of critical path construction items have been advanced through detail design and quotation. By making these items ?shovel ready? the project construction can commence as soon as the full funding package is available.
These items include;
? Plotting and survey of road corridor from the Barito River to BBM being carried out, 100% complete. The centreline of the road corridor has been established and control survey marks established for earthworks cut and fill control
? Purnama Port land mapping complete
? Some minor engineering design optimised and finalised ready for re-quoting
? Detailed river bottom and channel survey work completed for the load out port at Purnama and surrounding areas
BBM DEFINITIVE FEASIBILITY
Further costing, delivery confirmation and price enquiries continued to be carried out during the Quarter.
MINING
There has been a strong, continuous and positive interest shown by a number of reputable mining contractors for the initial 2 Mtpa direct shipping operation. This appears to reflect the current weakness in the global coal market
RIVER BARGING
Final detailed design is being completed and preparations are currently underway to place construction orders with shortlisted shipyards once funding has been finalised Since obtaining the Port location approval, work has continued on obtaining design and construction approval of the facilities. The design and construction approval application will be submitted to the Department of Transport in Q4 2014.
RIVER TRANSLOADING STATION
Design and costing are completed on the river based transloading station to transfer coal from the river barging system for the upper Barito, to ocean going barges for delivery to offshore customer vessels via floating crane transhipping systems.
Final selection of the site of the transloading stockpile facility is currently being carried out and near completion with a number of potential sites available.
ENVIRONMENTAL REHABILITATION
Cokal continued last quarter to undertake environmental monitoring on site as part of ongoing baseline studies. Rehabilitation activities have continued over the last quarter with activities concentrating on finalising the rehabilitation of the exploration drill pads and access tracks, the riverside buffer area and the site access road. Last Quarter approximately 10 hectares had been rehabilitated.
APPROVALS & EXTERNAL RELATIONS
BBM PRODUCTION APPROVAL ADVANCES ? UPDATE
As reported last quarter Cokal received the Izin Princip Ijin Pinjam Pakai Kawasan Hutan or ?In-Principal Forestry Permit? for its BBM Project. The In-Principle Forestry Permit is the last stage prior to the issuance of the ?Borrow and Use of Forest Area Permit (Ijin Pinjam Pakai Kawasan Hutan (?IPPKH?)) which allows the Company to start construction and mining.
The In-Principal 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 once the conditions of the In-Principal Forestry Permit are met.
Cokal has continued preparation of the administrative processes necessary to obtain the full IPPKH. This quarter Cokal completed the written undertakings regarding the payment of relevant taxes and rehabilitation, finalized the baseline disturbance area report and finalized the Rehabilitation Plan. Cokal progressed the designation of the external restoration area and has received in-principal approval from the Regency and Provincial Forestry Department. At meeting will be held in Jakarta in late October to finalise the designation process. Cokal has advanced the pegging of the Borrow and Use Forest Area with the majority of pegs having been installed. The final number of pegs to be installed is in the vicinity of 1,600 and it is expected that the installation of the pegs will be completed late October 2014 and final approval of the pegging activity from the Forestry Department in early November 2014. Cokal will submit the documents to the National Forestry Department in November 2014 and expects the issue of the full IPPKH in Q4 2014.
Detailed landowner and land use mapping is now substantially complete for the Purnama Port and the haul road corridor. Mapping of the first development areas within the mine area is scheduled to commence in Q4 2014
BBM PORT DESIGN APPROVAL
BBM has received its technical recommendation from the Harbour Master supporting the design of the Port Facilities and the barging channel. This recommendation now allows BBM to submit its full application to the Transport Department to have the design of the Purnama Port facilities approved for construction. The full application will be submitted in October 2014 with approval from the Transport Department expected in Q4 2014.
BBM FOREST INVENTORY SURVEYS
BBM has commenced the forest inventory surveys for the IPPKH area during the last quarter. Typically these surveys are conducted after the issue of the full IPPKH; however, Cokal has brought this task forward in order to reduce the time between issue of the full IPPKH and the commencement of construction activities. The inventory surveys have been completed for the Purnama Port area and are approximately 40% complete for the haul road.
The surveys are expected to be completed for the haul road and the initial mine development area in Q4 2014 in line with the issue of the full IPPKH. The data collected during the forest inventory surveys will be used to establish the various Government taxes payable by Cokal for activities in Production Forest areas.
BBM WEST BLOCK EXPLORATION IPPKH EXTENSION
During this quarter the application to extend the Exploration IPPKH for the BBM West Block was submitted to the National Forestry Department. The West Block has had very little exploration work completed to dateThe application is currently under evaluation by the Forestry Department. Once the extension is issued, BBM cancommence exploration in the BBM West Block.
BBP PRODUCTION APPROVAL ADVANCES - UPDATE
The finalization of the upgrade of the IUP exploration to an IUP production / operation (Mining Lease), by the Murung Raya Regency Government, continued during the last Quarter. The application to upgrade the IUP to production / operation status has been accepted by the Murung Raya Mines Department. The issue of the IUPproduction / operation (Mining Lease) is expected to be completed in Quarter 4 2014.
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. As reported previously award of the Clean and Clear certificate has been delayed due to workloads in the Mines Department and this continued last quarter. Cokal has continued with discussions with the Mines Department and it is now expected the granting of the certificate will occur in Quarter 4 2014 in parallel to the issue of the IUP production / operation.
TBAR EXPLORATION FORESTRY PERMIT
Cokal continued during the last quarter to progress the Exploration Forestry Permit for TBAR with the Central Kalimantan Provincial Government. Site visits by the Provincial Government were expected to occur during Quarter 3 2014 and the issue of the Provincial Government technical recommendation expected early Quarter 4 2014. 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 Q1 2015.(end of excerpt)