Cokal gets funding partner for BBM
PERTH (miningweekly.com) – ASX-listed Cokal has secured development funding for its 60% owned Bumi Barito Mineral (BBM) pulverised coal injection (PCI) coal project, in Indonesia.
Cokal on Wednesday told shareholders that it had executed a binding term sheet with Aahana Global Resources & Investment, a special purpose vehicle incorporated in the Mineral Energy Resource Group.
Under the terms of the agreement, Aahana will contribute all the necessary funding required to develop the BBM project to 50 000 t/m of saleable production, including the provision of cash, assets, mining equipment and contracting services.
The joint venture (JV) will remain in effect from first production, for the first five years, or a cumulative saleable production of four-million tonnes, whichever is soonest.
Aahana’s share in the JV will be 40%, and the company will be entitled to profits from coal sales, based on this shareholding.
Previous feasibility work on the BBM project has determined that a capital investment of $68-million would be required to develop a two-million-tonne-a-year openpit coal mine.
Cokal said on Wednesday that the company is preparing to upgrade the BBM Anak operation, with the construction of the BBM PCI coal mine, which will continue to operate the existing PCI openpit operation at a higher rate of production.
Initial site preparation will include the relocation of a suitable barge-loading port in close proximity to the mining operation.
Aahana and Cokal will review the mine plans and will agree on the selection of mining and barging equipment.
With an accelerated development timeline, first coal production has been targeted for the fourth quarter of this year.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation