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- Coal producer Cokal (CKA) has provided updates on the start-up of mining operations at the BBM Project in Indonesia
- The company has held meetings with its preferred tenders, and mining contracts are expected to be awarded in June
- Road repairs are expected to begin in June and will be completed within six months
- A drone survey has been completed and the information will help finalise the road design
- Finally, Cokal is currently in discussions to secure an existing barge while its own is being developed
- Despite COVID-19 related restrictions, the company is largely on schedule with its internal progress, however, there have been some delays regarding the hiring of external contractors
- Cokal is down a slight 2.27 per cent on the market and shares are trading for 4.3 cents each
Coal producer Cokal (CKA) has provided updates regarding the start-up of mining operations at the BBM Project.
The BBM (Bumi Barito Mineral) Project is located in the Central Kalimantan Province of Indonesia and it covers an area of 14,980 hectares.
The current resource estimate for BBM sits at 266.6 million tonnes comprising 19.5 million tonnes measured, 23.1 million tonnes indicated, and 244 million tonnes inferred.
Coal mining tenders
Cokal has received all mining contract proposals and they are currently being evaluated and shortlisted by its technical and commercial teams.
Meetings have been held with the preferred tenders and mining contracts are expected to be awarded in mid to late June.
Road permit
The BBM Project has been issued an Exclusive Legal Corridor permit that extends from the former roads to the current road.
Repair of the former road will be undertaken as quickly as possible as it will provide uninterrupted access for contractors once completed.
It is estimated that this repair will begin in June and will be completed within six months.
Drone survey
A drone survey of this road has been completed and a preliminary report has been received, however, a full analysis will take a few weeks and results are expected in mid-June.
The results from this will be used to finalise the road design.
Barge update
Cokal is currently in discussions to secure an existing barge while its own is being developed.
Based off results from a bathymetric survey (the study of underwater depth of bodies of water), Cokal is confident that it will be able to use the barge all year as the river doesn’t get very shallow.
Loan funds
China Rail have confirmed their commitment in regards to finalising the infrastructure funding, however, it is awaiting a final visit to Indonesia.
Once COVID-19 travel restrictions have been lifted, the company will travel there and finalise the agreement.
COVID-19 update
Cokal has reaffirmed its commitment towards maintaining the health and safety of its staff and contractors.
Relevant safety measures are currently in place such as working from home and social distancing.
Despite restrictions, the company is largely on schedule with its internal progress, however, there have been some delays regarding the hiring of external contractors.
Cokal is down a slight 2.27 per cent on the market and shares are trading for 4.3 cents each at 11:59 am AEST.
