Indonesia gives Cokal approval for BBM coking coal project
Australia-listed coal producer Cokal has been granted approval by the Indonesian government for its Bumi Bumi Mineral (BBM) coking coal project, the miner has told the Australian Stock Exchange.
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In a filing to the exchange on Wednesday May 1, BBM said it was granted a production mining lease for an area of 15,000 hectares, the full development of the eastern block of the concession to 6 million tpy, and exploration of the rest of the concession.
Cokal plans to start production of premium hard coking coal at BBM, located in Kalimantan, in the first half of 2014.
“This now completes the mining approvals required for BBM production, and places the company in a very sound position to start construction of the project before the end of the year,” Cokal executive chairman Peter Lynch said in the filing.
Cokal said that it was now focused on upgrading a forestry exploration permit to a production permit, scheduled for the third quarter of 2013.
The miner plans to ship coal to the Asian steel market by barging the raw material down the Barito river in the first half of 2014.