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Cokal provides BBM Project update

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World Coal,

Cokal Ltd has previously announced it selected the Batu Luhung site for its permanent jetty for the BBM project. It has now completed the purchase of this site and completed LiDAR and bathymetric surveys of the site. BBM has appointed consultants to design the coal stockpiles, conveyors, barge loader, fuel storage, power supply, laboratory, weighbridge and office.

Key highlights

  • The permanent jetty and ISP site at Batu Luhung has been purchased.
  • LiDAR and bathymetric surveys at this site have been completed.
  • Engineers have been appointed to design the land and river facilities at the permanent jetty site.
  • Application for the jetty licence is underway.
  • Short term fuel supply facilities established at the temporary barge loading site.
  • The road access to the BBM mine has passed the Mohing River at 72 km.
  • Mohing River bridge construction has commenced and is proceeding well.
  • Road (52 – 72 km) being upgraded to final profile ahead of schedule.
  • Additional equipment now deployed to establish and repair the road to BBM.
  • Compensation for land beyond Mohing River now completed for the next 6 km to enable road clearing to progress.
  • Land compensation also happening in the Pit 3 area, and along the road towards the Mohing River.
  • Memorandum of understanding (MoU) signed with other users of the road from 4 – 52 km to share road improvement and maintenance costs.

A temporary crossing of the Mohing River has been established to enable road clearing to proceed ahead while the Mohing River bridge is being built.

Construction commenced on the Mohing River bridge, the biggest bridge on this road, and is proceeding to plan.

BBM has deployed additional equipment to upgrade the road to access its coal mining areas while at the same time upgrading the road profile to be suitable for use as a long-term coal haulage road. Upgrading will require the team to widen the road, reduce road gradients, spread sub-base rock where required, compact the sub-base and improve drainage to final standard.

After the Mohing River bridge has been constructed, only one major bridge will be required in the last 26 km of road to the mine. The most difficult section of the road reconstruction is now behind the company.

Cokal is confident the road can be completed to become an all weather road in the future after crushed gravel is applied as is appropriate for a mine operating 24/7 for the whole year.

Land compensation has been prioritised so road clearing can proceed unhindered. This is a major element of construction in Kalimantan to ensure indigenous villagers are fairly compensated for the impact on their agricultural land. Two teams are working simultaneously in order to speed up the process. One team is continuing the survey and legal due diligence from 52 km towards Pit 3, which has already reached 76 km, and the other team has started from Pit 3 along the road towards the first crew.

Cokal has signed an MoU with other users of the road to conduct a joint survey for the road beginning from 52 km to 4 km, which is the intersection road to BBM’s jetty at Batu Luhung. This has a clear division of responsibility for road upgrading, repair and maintenance.

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Indonesia coal news