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

Client
Cokal.

Project Description
The BBM coal project has a total Joint Ore Reserves Committee-compliant coal resource estimate of 261-million tonnes, comprising 10.5-million tonnes measured, 3.5-million tonnes indicated and 237-million tonnes inferred resources.

A definitive feasibility study has confirmed that the BBM coal mine and associated transport system can be developed as a low capital-cost operation, with moderate- to medium-range operating costs. The study proposes the development of a two-million-tonne-a-year opencut mining operation, which could be expanded to a six-million-tonne-a-year operation.

Coal mined and processed at BBM will be transported about 774 km from the mine site to an ocean-going vessel at Taboneo, in the Java Sea. Transportation to the ocean-going vessel will involve four stages – using trucks, shallow-draft barges, ocean-going barges and a floating crane transshipper.

Coal extracted from BBM – either processed through the coal-handling preparation plant or screened as direct shipping product coal – will be transported by trucks about 55km on a haul road to a river port on the Barito river. Once loaded on shallow-draft barges on the Upper Barito river, the product coal will be transported 503 km down the Barito river to the intermediate stockpile port, located upstream of Kelanis on the Barito river.

Value
The total estimated development capital required for BBM to deliver product at a production rate of two-million tonnes a year, including developing a coal handling preparation plant, a haulage road and all the necessary transport and site infrastructure, is $75-million.

Duration
Construction is expected to start in April 2014 and to be completed in December 2014, with first production from BBM scheduled for the first quarter of 2015.

Latest Developments
Takeover target Cokal has received full forestry approval for its BBM coal project.

The Environment and Forestry Minister has issued a borrow and use of forest area permit, concluding the final approval process necessary to enable Cokal to start production at the mine.

An estimated 1 242 ha is covered under the forestry permit and includes the initial mine site, haul road and port operations.

In addition to the forestry permit, Cokal also has an approved mining licence and full environmental approval to extract up to six-million tonnes a year of coal.

In March, Indonesian firm PT Carka Mineral TBK made a takeover offer, offering shareholders A$75.5-million for their collective shareholding in the company.

Carka is offering shareholders 16c a share in cash, a premium of 82% on Cokal’s last trading price before the offer.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

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