PERTH (miningweekly.com) – ASX-listed coal developer Cokal has signed a memorandum of understanding (MoU), which could see the development of its Bumi Barito Mineral (BBM) coal project, in Indonesia.
The MoU would enable Indonesian project house Blackspace to undertake discussions and due diligence on the BBM project for possible project funding or a corporate level transaction, Cokal reported on Monday.
The BBM project would initially entail a two-million-tonne-a-year operation, which could be expanded to a six-million-tonne-a-year operation. A feasibility study estimated that a capital investment of $75-million would be required to establish the operation. Based on the current resource of 261-million tonnes, the project would have an estimated life of ten years.
Cokal said on Monday that Blackspace also recently acquired its 75% interest in PT Anugarah Alum Manuhing (AAM), and was interested in acquiring some of the company’s other noncore tenements.
The sale of AAM and the planned additional sales of noncore tenements, along with the possible additional development funding, has enabled Cokal to develop a constructive working relationship with Blackspace, the company stated.
This, in turn, could enable Cokal to successfully restructure its balance sheet and start construction on the BBM project.