Australian miner Cokal has announced the start of in-house production at its Bumi Barito Mineral (BBM) metallurgical coal project in Kalimantan, Indonesia, resuming limited mining operations at Pit 3, producing small tonnages of low volatile hard coking coal (LVHCC) to maintain continuity of operations during a period of subdued market demand. The decision marks a major milestone in the company’s operational strategy, allowing it to control key aspects of production and enhance efficiency across its supply chain.
The move to bring operations in-house reflects Cokal’s focus on improving production reliability, reducing external costs, and optimizing output quality as demand for premium metallurgical coal continues to strengthen in regional markets.
Enhancing control and efficiency across the production cycle
By transitioning to in-house production, Cokal gains direct oversight of mining, processing, and logistics, strengthening its ability to adapt to market and operational conditions. This structure is designed to reduce dependency on third-party contractors and allow for more flexible deployment of equipment, manpower, and capital.
Company representatives noted that in-house operations will help stabilize output, improve cost visibility, and enhance overall quality control, especially during the ramp-up phase of the BBM project.