Name and Location
Bumi Barito mineral (BBM) coal project, Kalimantan, Indonesia.

Client
Cokal.

Project Description
The BBM project has Joint Ore Reserves Committee-compliant resources of 77-million tonnes.

An initial development study on the project has confirmed that the project has a sound technical and economic basis for a potential openpit, premium-quality openpit coal mine.

The study proposes using mining contractors to operate an openpit mine. The initial Stage 1 mine is based on a direct shipping, low-cost operation, directly mining from the current resources.

The production profile comprises two stages.

The first stage involves the initial mining and ramp-up, delivering up to two-million tonnes a year of run-of-mine production. During this phase, a coal handling preparation plant (CHPP) will not be required.

Stage 2 involves an expansion concept case, requiring additional capital expenditure and a CHPP.

Value
The estimated development capital required for BBM to deliver Stage 1, including a haulage road and all necessary transport and site infrastructure, is $100-million.

Duration
It is envisaged that Stage 1 production at BBM will begin in the second quarter of 2014.

Latest Developments
The Central Kalimantan Provincial Government Environmental Agency has approved Cokal’s environmental-impact statement (EIS).

The EIS complies with Indonesian environmental and mining regulations and covers the integrated development of the BBM mine, haul road and river barging terminal.

The approval of the EIS by the environmental agency provides the opportunity to finalise the upgrade of the project from an IUP exploration to an IUP production/operation (mining lease) by the Murung Raya Regency Mines Department.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Cokal remains on track to start construction in the fourth quarter of 2013.

Contact Details for Project Information
Cokal, tel +61 7 3001 4100 or email info@cokal.com.au.