Cokal owns 60% of the Bumi Barito Mineral (BBM) project located in the Central Kalimantan Province of Indonesia with multiple seams of high quality metallurgical coal. The permit covers an area of 14,980ha within the highly prospective Central Kalimantan coking coal basin, adjacent to Indomet’s extensive coking coal tenements.
The BBM permit area is bisected by the Barito River. It will be the first deposit to be mined by Cokal, starting with the areas east of the river, shown in Figure 2 as Pits 1, 2, 3 and 4.
BBM has all regulatory approvals in place including:
The Company has developed a 5-year mine plan to be implemented in 2023 including:
Cokal currently hauls coal product from pit to its main jetty at Batu Tuhup Port to bypass the most difficult parts of the Upper Barito River. The total pit to port is 98kms. Phased development and upgrade of existing haul road continues along with continuous hauling operations.
No land coal storage is being developed for BBM apart from stockpiles at the mine, mine mouth Krajan jetty and at its main port at Batu Tuhup.
Cokal through its fully owned subsidiary Co PT BSN owns and operates 3 sets of 120ft barges to transport coal from mine mouth Krajan jetty to Batu Tuhup Port , allowing BBM to transport its coal
product by river and haul road.
PT BSN also owns and operates a fleet of dump trucks with 30t pay load capacity alongside external
hauling contractor to haul coal product from Pit to Port.
BBM will produce high quality PCI and coking coal. Characteristics of all product coal from BBM will be low ash, low sulfur, low moisture, ultra low phosphorus and, for coking coal, high swell. The coal contains more than 90% vitrinite. The PCI coal will not need to be beneficiated. Coking coal will either be screened or jig washed to extract the high ash partings, anticipated yield 85%.
There has ben no recent exploration activity in the field on any of Cokal’s assets. Consequently the JORC Resources Statement for the BBM Project of 29 April 2016 remains current. The total Resource estimate for BBM is 266.6Mt comprising 19.5Mt Measured and 23.1Mt Indicated Resources respectively with the balance of 224Mt at Inferred status. Only seams East of the Barito River were included in this assessment of Resources and Reserves.
The JORC Reserves Statement for the BBM deposit of 28th of July 2017 remains valid. The highlights of this Reserve statement are:
The J Seam Reserves comprise 5.5Mt Proved and 3.2Mt Probable Marketable Coal Reserves and is all coking coal. The B, C and D Seam Reserves comprise 3.0Mt Proved and 1.1Mt Probable Coking Coal Marketable Reserves, and 2.4Mt Proved and 1.7Mt Probable PCI Marketable Coal Reserves.
Economic Reserves were determined using the Definitive Feasibility Study prepared in 2014 by Resindo, updated to reflect reduced fuel costs and depreciation of the Rupiah in November 2016 (see ASX Announcement 2nd November, 2016).
Coal analyses from more than 130 outcrops on the West side of the Barito River indicate that extensive quantities of premium quality anthracite and PCI coals occur there. This coal does not currently form part of evaluated BBM coal Resources and Reserves. It is believed these are the same seams that occur in the East block.