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Highlights
- Cokal signs haulage deal for Indonesian coal project.
- BBM mine to ramp up production with 100 trucks planned.
- Infrastructure upgrades include new steel bridge for rainy seasons.
Cokal Ltd (ASX:CKA), an Indonesia-focused coal company, is taking key steps to support the production ramp-up of its 60%-owned Bumi Barito Mineral (BBM) coal mine in Central Kalimantan. The company has signed a three-year hauling services agreement with PT Stanley Mitra Abadi, a local company, to transport coking and PCI coal from the BBM mine.
This agreement is crucial for Cokal's plans to increase output at the BBM site, which boasts a JORC mineral resource estimate of 266.6 million tonnes. The plan includes deploying up to 100 trucks, each with a payload of 42 tonnes, to transport coal from Pit 3 to the Batu Tuhup Jetty. The haulage process is scheduled to start on October 14, with an initial fleet of 20 trucks, gradually increasing as production scales up.
In addition to the haulage agreement, Cokal is also upgrading infrastructure around the BBM mine. A key part of this development is the construction of a semi-permanent steel bridge over the Mohing River, which will enable more reliable transportation, particularly during the rainy season. The new bridge is expected to be completed by December 2024, replacing the existing wood bridge that will remain operational until the project is finished.
Despite these positive developments, Cokal shares saw a slight dip in trading, dropping by 1.30% to 7.6 cents as of 15:00 AEST. However, these infrastructure improvements are critical for the long-term success of the BBM project, positioning the company for increased production and more efficient coal transport in the near future.
As Cokal continues to enhance its logistics and infrastructure, these efforts will likely support a smoother ramp-up at the BBM mine, aligning with the company's broader goals of maximizing output and improving operational efficiency in Indonesia.
