Name of the Project
Bumi Barito Mineral (BBM) coal project.
Location
Central Kalimantan, Indonesia.
Project Owner/s
Cokal (60%).
Cokal is preparing a submission regarding the BBM underground mining project to the Indonesian government for its consideration in granting the maximum foreign ownership (70%) of BBM for the life-of-mine.
Project Description
The project envisages the construction of an underground mine, which will use three continuous miner development units and a built-for-purpose longwall plow.
The highwall punch mine configuration and shallow nature of the inferred resources will not constrain longwall output because of outbye coal clearance systems, which is the case in similar plow operations installed in existing older mines.
The project is expected to produce two-million tonnes a year of saleable coal from its third year of production.
Potential Job Creation
The company currently has about 20 staff on site to prepare it for the initial construction work to develop the project.
Net Present Value/Internal Rate of Return
As a result of ASX restrictions on forward statements, Cokal may not provide any of these estimates in a public statement.
Capital Expenditure
As a result of ASX restrictions on forward statements, Cokal may not provide any of these estimates in a public statement.
Planned Start/End Date
Not stated.
Latest Developments
Cokal is expediting the development of its BBM coking coal project, with preliminary development activities being undertaken at the site in expectation of (receipt of) funding.
The company secured $20-million debt earlier this month, signing a binding letter of intent provided by China Railway 21st Bureau Group International Engineering Co and Beijing Fidick International Trade Co.
The company has said that it is progressing with a development strategy for BBM that will minimise the upfront capital requirement to achieve first production using mining contractors, contracting the transport logistics to third-party operators and leasing down-river coal stockpiling facilities for transport efficiencies.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Cokal, tel +62 21 5790 3265 or email info@cokal.com.au.