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Cokal sells off Australian assets

7th March 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Coal developer Cokal has completed the divestment of its Australian tenements to XMC Australia for A$2.06-million.

The transaction has been approved by all the necessary regulators, including the Australian Foreign Investment Review Board, the Chinese government, and the Queensland state government.

“The sale will enable Cokal to focus on development of its Indonesian assets, particularly its Bumi Barito Mineral (BBM) project,” said executive chairperson Peter Lynch on Thursday.

The BBM project recently achieved three significant milestones, having completed and submitted its environmental-impact study, along with the applications for a mining licence and a production forestry permit.

The BBM project had an exploration target of between 200-million and 350-million tons, and a Joint Ore Reserves Committee-compliant resource of 77-million tons.

It was proposed that the BBM project would produce up to 6.5-million tons run-of-mine coal a year, to provide 5.6-million tons a year of saleable product. Production was scheduled for the first half of 2014.

Cokal recently acquired a 75% interest in a tenement adjoining the BBM project, which the company believed had reasonable potential to host coal seams.

Edited by Creamer Media Reporter

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