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Cokal expects mining licence by end of the year

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World Coal,

Cokal is expecting its IUP mining licence for the Bumi Barito Mineral (BBM) coal project in Central Kalimantan, Indonesia, to be completed by the end of the year, according to its 2Q16 quarterly update, after its was signed by the district government and forwarded to the provincial mines department for issue.

Cokal has also submitted its application for the Clean and Clear Certificate Exploration from the Director General of the National Mines & Energy Department, formalising the previous award of Clean and Clear status.

The BBM underground mining project contains a total resource estimate of 266.6 million t of metallurgical coal – including 90% coking coal and 10% PCI coal. A recent updated report showed the deeper coal resources were amenable to extraction by thin-seam longwall mining methods.

Both coking and PCI coals from three of BBM’s coal seams – B, C and D – would be suitable for direct-to-ship extraction due to its very low ash content. The area covered by the coal resource estimate is 30% of the total BBM Production IUP tenement licence.

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