Cokal Limited has received written approval from Indonesia’s Minister for Transport for the location of a river barge loading terminal (Purnama Port) on Barito River for its flagship Bumi Barito Mineral (BBM) Coal Project in Central Kalimantan.  1

The approved Purnama Port site covers 150 hectares that includes a 1.5km Barito River frontage adjacent to Purnama village. The port will be developed in two stages with an initial 2 million tonnes/annum operation as the first stage and an expansion of up to 6 million tonnes in line with the development of the BBM mine.

Cokal chairman and CEO Peter Lynch says, “This approach is consistent with the EIS approval granted in April this year that covers the integrated development of the BBM mine, haul road and Purnama Port.”

Together with the approval of the haul road, the approval of the Purnama Port site secures the locations of the two critical supporting infrastructure required for the BBM project. Peter Lynch says, “The approval of the Purnama Port site (and previously the haul road alignment) is a major milestone for the project and is the culmination of a significant effort over the last 12 months by the Cokal team to work with the regency, provincial and national governments as well as the local community at Purnama.”

Land acquisition arrangements for the Purnama Port are continuing with the majority of the 150 hectare site being identified as available and appropriate for acquisition. A cooperative collaboration with significant contributions from the local community, land owners and local government helped to ensure this result. The location of the port is based on successful operating facilities tailored for shallow draft hopper barging systems.

Geotechnical investigations have been completed for both the on-shore and off-shore components of the Purnama barge loading terminal. The approval of the barge loading terminal now enables Cokal to complete the final earthworks design and costing and remain on track to commence operation in the first half of 2014. This timeframe is consistent with the schedule for the issuing of the Forest Rent Use Permit (Operation/Production) or Izin Pinjam Pakai Kawasan Hutan (IPPKH) for BBM, which is expected now in early the first quarter of 2014.

Detailed studies of the Barito River have been completed confirming the suitability of the Purnama Port location and the practicality of using a river based shallow draft barging system.

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