Kalkine: Cokal Secures Strategic Debt Funding to Expand Indonesian Coal Operations

June 12, 2025 03:53 PM AEST | By Team Kalkine Media

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Kalkine: Cokal Secures Strategic Debt Funding to Expand Indonesian Coal Operations — Image source: Shutterstock

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Highlights

Cokal (CKA) secures US$15 million funding boost

Capital to drive Indonesian coal production

Strategic support enhances infrastructure and logistics

Cokal (ASX:CKA), an Australian coal exploration and development company, has successfully arranged a significant US$15 million (approximately AU$23 million) debt funding deal to support its coal mining operations in Indonesia. The funding comes from long-term shareholder Eddie Chin Wai Fong, through International Commodity Trade (ICT), and aims to boost the company’s production and logistics infrastructure.

The funding structure includes a US$1.5 million cash advance and US$13.5 million in bank loans. ICT has the flexibility to adjust the proportion of the cash and loan components to ensure the entire commitment is met. The cash advance carries an annual interest rate of 10%, while the bank loans attract an annual rate of 8%, with interest payments made monthly.

This capital injection is expected to play a crucial role in expanding metallurgical coal output at the Bumi Barito Mineral Mine in Central Kalimantan, Indonesia. Cokal plans to deploy the funds toward critical capital expenditure projects that will increase mining operations and upgrade transport infrastructure. These enhancements aim to improve operational efficiency and reduce per-tonne costs of saleable coal production.

Cokal’s CEO, Karan Bangur, highlighted the importance of the funding's timing, especially following the unexpected withdrawal of previously committed funds from another party. He noted that the backing from ICT reflects confidence in Cokal’s strategic direction and operational potential.

One of the standout aspects of the deal is its non-dilutive nature, ensuring that the ownership interests of existing shareholders remain unaffected. Bangur emphasized that ICT’s support during challenging market conditions underscores its long-term commitment to the company’s success.

Chairman Domenic Martino further revealed that the company is in discussions with multiple parties regarding the use of self-propelled barges to enhance coal transport capabilities. According to Martino, several potential partners are being evaluated to strengthen Cokal’s logistics infrastructure, which is crucial for scaling up production volumes.

International Commodity Trade, which is incorporated in Singapore, is a key player in the coal trading and investment space. It is linked to AMR Holdings, a substantial Cokal shareholder holding a 20.54% stake in the company.

With this fresh capital and strategic support, Cokal (CKA) is positioning itself for a stronger operational footprint in Indonesia’s coal sector, as it continues to advance its four key projects in the region.

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