Cokal secures supply chain option for BBM
PERTH (miningweekly.com) – Coal developer Cokal has signed a joint venture (JV) agreement with Meratus Advance Maritime (MDM) to own and manage the shallow river barges and tugs design for the PT Bumi Barito Mineral (BBM) project, in central Kalimantan.
Cokal told shareholders on Wednesday that the JV was an accumulation of nearly two years of studies into river-based shallow draft barging systems, which has confirmed its effectiveness on the Barito river.
The company noted that while shallow draft barging systems are used extensively worldwide, the system has not been used in Indonesia to date.
“This strategic partnership enables MDM to bring the experience and know-how necessary to ensure the success of river barging on the Barito river, and for Cokal to be a part of controlling the critical part of its supply chain,” said Cokal chairperson and CEO Peter Lynch.
MDM would operate the river barges and the river supply chain that would service the BBM project.
The BBM project covers some 15 000 ha of land and has a resource of 77-million tons. Cokal was completing a definitive feasibility study and obtaining the necessary approvals with the aim of starting construction in October this year, and producing first coal by the first half of 2014.
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