PERTH (miningweekly.com) – Coal developer Cokal on Friday revealed that it was expediting the development of its Bumi Barito Mineral (BBM) coking coal project, in Indonesia, with preliminary development activities being undertaken at the site in anticipation of receipt of funding.
The company earlier this month secured $20-million debt, inking a binding letter of intent provided by China Railway 21st Bureau Group International Engineering Co and Beijing Fidick International Trade Co.
The ASX-listed Cokal on Friday said that the company was progressing with a development strategy for BBM that would minimise the upfront capital requirement to achieve first production by using mining contractors, contracting the transport logistics to third-party operators, and leasing down-river coal stockpiling facilities for transport efficiencies.
The company currently has some 20 staff on site at BBM preparing the site for the initial construction work to develop the project.
Cokal holds a 60% interest in the BBM project, which is expected to produce at a rate of two-million tonnes a year of saleable coal from its third year of production.