The global metallurgical coal group, Cokal Limited, has received a conditional proposal for a debt financing facility of US$ 150 million from an international consortium including Platinum Partners. The funding will initially be used to fund Cokal’s 2 million tpa Bumi Barito Mineral (BBM) project.
Cokal has now entered into detailed negotiations on the proposal, which is in the form of a non-binding Memorandum of Understanding (MoU) and is subject to various terms and conditions.
The company is still in discussions with a number of parties including this consortium, and is currently focused on finalising the necessary funding to start construction on the BBM project.
BBM coal project
The BBM coal project is located in Central Kalimantan, Indonesia in the prospective metallurgical Upper Barito coal basin. The project covers an area of 15 000 hectares, and is adjacent to BHP Billiton’s project in Murung Raya Regency.
BBM currently has a JORC Resource of 264 million t in multiple seams comprised of 10.5 million t measured, 13.5 million t indicated and 240 million t inferred coal resources. Cokal is completing definitive studies and obtaining the necessary approvals with the aim of commencing construction in late 2013 which would see first production occur in 2014.
Adapted from press release by Katie Woodward