Australian miner Cokal has announced that its Indonesian subsidiary PT Bumi Barito Mineral has signed a binding term-sheet with Indonesian mining services company PT Petrosea Tbk (Petrosea) to expand operations and increase production at its Bumi Barito Mineral (BBM) metallurgical coal mine in the Kalimantan province of Indonesia. Petrosea will support the company to ensure sustainable coal production and the readiness for production expansion by extending payment terms for mine service providers by an additional 120 days.
Cokal anticipates lower production costs per metric ton, with Petrosea agreeing to assist Cokal in selecting mine service providers and optimizing the terms of the agreements with these mine service providers.
The BBM mine is estimated to hold approximately 266.6 million mt of coal reserves.