Cokal picks mining contractor for BBM coking coal project

By Rara Suratmi

ASX-listed coal mining firm Cokal Limited announced Monday that it has selected PT. Harmoni Panca Utama (HPU) as the preferred tenderer to provide contract mining services for the development and mining of Bumi Barito Mineral mine in Central Kalimantan.

The BBM mine will produce premium coking coal and PCI products for the nearby Asian steel markets.

Under the 5-year contract, HPU will provide the following mining services:

i. open-pit overburden removal;

ii. provision of the required mining fleet and associated equipment; and

iii. coal hauling from in-pit to near-out-of-pit intermediate stockpile facilities.

HPU has agreed to mobilise upon receiving notice from Cokal to do so.

The appointment of HPU remains subject to finalising formal contracts. “Cokal's commercial team have negotiated the key commercial terms which are substantially attractive for Cokal, thus providing the opportunity to achieve favourable profit margins to be enjoyed by Cokal shareholders,” it said.

BBM is Cokal's most advanced project a high quality metallurgical coal project, located in Central Kalimantan with a mining lease area of 14,980ha. Cokal is focused on the near-term development of BBM, having recently received a binding funding commitment that provides the required capital for the development of BBM.

HPU, according to Cokal, is one of the largest mining services companies in Indonesia, with a high-quality management team that operates to the highest of international mining standards, including safety, environmental and community benchmarks. HPU has capabilities across all facets of mine planning & design, mine development, and mining operations and has experience working and operating some of the largest coal mines in Indonesia.

Editing by Alexander Ginting