Australian miner Cokal has announced that its Indonesian subsidiary PT Bumi Barito Mineral has signed a binding term-sheet agreement with Indonesian coal mine developer PT. Cipta Bersama Indonesia (CBI) to develop an underground mining operation at Pit 1 of the Bumi Barito Mineral (BBM) metallurgical coal mine in the Kalimantan province of Indonesia to produce PCI coal products. The company plans to commence production within 18 months.
CBI will pay all mine development costs and 100 percent of ongoing operating costs until delivery of coal to stockpile, and will execute operations for underground coal mining and coal wash plant activities. Cokal will undertake the transport, sales and marketing of the coal product. The timeline for Stage I is six months, while Stage II is expected to be completed in the next 12 months thereafter.
Meanwhile, the company recently signed an agreement with Indonesian mining services company PT Petrosea Tbk (Petrosea) to expand operations and increase production at its BBM metallurgical coal mine, as SteelOrbis previously reported.