Cokal in talks with Blumont on funding, takeover

Cokal said it has been in discussions with Singapore-listed Blumont Group about a $77-million funding package for its Bumi Barito Mineral (BBM) coking coal project in Indonesia.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

In addition, the two parties are close to finalising Blumont’s potential A$124-million ($117 million) takeover of Cokal, the Indonesia-focused coal miner said on Tuesday October 8.

The priority, however, is the $77-million facility, which would enable Cokal to build the BBM mine in Central Kalimantan, Indonesia and infrastructure to reach first production in the first half of next year, according to the miner’s statement .

Cokal noted the significant downward movement in Blumont’s share price over the past few days and said that it would “materially and adversely” affect the commercial terms of the takeover proposal.

Blumont shares were trading at S$0.15 ($0.12) at the time of writing, down from a closing price of S$2.02 ($1.62) on October 3.

“Blumont and Cokal continue to believe in the strategic merit underpinning Blumont’s proposals, further discussions are now occurring to restructure the financing and potential takeover offer,” Cokal said.

Blumont said the volatility in its share price may be partly due to a local broking house recently declaring its shares as designated securities.

Blumont has a global portfolio of diversified assets in the minerals and energy resources sector, including those of coking coal, thermal coal, gold, copper and uranium.

What to read next
Fastmarkets has launched MB-AL-0424 Aluminium P1020A premium, fob Indonesia, $/tonne on July 9 due to an expected increase in Indonesia-origin aluminium exports. MB-AL-0424 Aluminium P1020A premium, fob Indonesia, $/tonneQuality: P1020A or 99.7 % Minimum Al purity (Si 0.10% max, Fe 0.20% max) in line with LME specifications. Ingot, T-bar, sowQuantity: Min 500 tonnesLocation: FOB IndonesiaTiming: […]
To increase the transparency of our methodology, Fastmarkets clarifies that the quotation period of the MHP nickel payable indicator is the month of delivery, or the month M. Any data points Fastmarkets received otherwise will be normalized to the M month based on the monthly spreads of the prevailing exchange-traded Class-1 nickel reference price, or […]
'Probably miscalculated’ assumptions at Kakula mine force Ivanhoe to overhaul entire Kamoa-Kakula complex, explains CEO Marna Cloete.
Following an initial consultation with the market, Fastmarkets is proposing to:  The new specifications would be as follows, with amendments in italics: MB-CU-0002 Copper grade 1 cathode premium, ddp Midwest US, US cents/lb Quality: Grade A 99.9935% min copper cathode conforming to LME specifications BS EN 1978:2022 – Cu-CATH-1 or Grade 1 Electrolytic Copper Cathode ATSM B1115-10 Quantity: Min […]
Fastmarkets’ 2025 outlook for key raw materials and ingredients used in the production and distribution of fast-moving consumer goods.
Vale Base Metals plans to boost annual copper production to 700,000 tonnes by 2035, aiming to become a top-five global producer of nickel and copper. CEO Shaun Usmar highlights a focus on productivity, cost optimization and sustainable growth. With strong assets in Canada and Brazil, Vale is well-positioned to meet rising global demand.