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Construction is expected to start in April with completion anticipated in December, Cokal said on Thursday February 13.
“The [definitive feasibility] study has confirmed that the BBM mine and associated facilities and transport systems can be developed as a low capital cost operation with moderate to mid-range operating costs,” Cokal said.
Total estimated development capital required for BBM to deliver an output rate of 2 million tpy is $75 million. This would include developing a coal-handling preparation plant, a haulage road and all necessary transport and site infrastructure, its statement noted.
Operating costs, on the other hand, are estimated at an average of $82 per tonne fob for the first five years.
BBM has total JORC-compliant coal resource of 261 million tonnes, comprising 90% coking coal and 10% pulverised coal injection (PCI) material.
Cokal has finished the definitive feasibility study for its Bumi Barito Mineral (BBM) metallurgical coal project in central Kalimantan, Indonesia and the first production is scheduled for the first quarter of 2015.