INDONESIA - BBM coal resource increases 17 million tonnes

Cokal has increased the total resource estimate by 17 million tonnes at its Bumi Barito Mineral (BBM) coal project in Central Kalimantan. The additional estimate consists of an indicated 7 million tonnes and an inferred 10 million tonnes of coal recently discovered in the ‘J’ seam at the project. The quality is 70% coking coal and 30% PCI. 

“This increase confirms our view that the coal quality of the BBM project continues to develop as a primarily coking coal project as we progress towards the east,” says Cokal executive director Pat Hanna.

The ‘J’ seam is the uppermost of nine seams identified at the 19,920 hectare project which is adjacent to BHP Billiton’s Juloi tenement along the Barito River. This new seam overlies three others which were used to estimate the JORC-compliant inferred coal resource last year.

Cokal’s managing director Jim Middleton says the ‘J’ seam exhibits the same remarkable coking features as the ‘B’, ‘C’ and ‘D’ seams. “The coal has very attractive attributes being very low in impurities while containing the right essential metallurgical attributes sought by Asian steel makers.

“The low in situ ash content indicates there is a reasonable opportunity that a direct ship style operation can be developed, avoiding the need to construct a coal washing plant which would involve significant time and capital,” he said.

Cokal has estimated the total exploration target from at least 13 seams at the Eastern block of BBM at between 200-350 million tonnes, based on coal occurrences less than 200 metres deep.

The company is progressing with plans to take BBM into production as soon as possible, with an initial annual start-up target of 1-2 million tonnes. Cokal is also advancing its feasibility and environmental studies necessary to obtain mining approvals.

In other news, the company has announced it holds the majority share and operational control in five Indonesian projects. Cokal purchased its shares in five Indonesian companies which own the projects, then applied to have the holding companies converted to Penenaman Modal Asing (PMA) companies which can legally have 100% foreign ownership.

Cokal owns between 60 and 75.2% in each of the Indonesian companies PT Bumi Barito Mineral, PT Borneo Bara Prima, PT Anugerah Alam Katingan, PT Anugruh Alam Manuhing and PT Silangkop Nusa Raya.

www.cokal.com.au