Cokal and Cratus Forge Joint Venture to Boost Coal Transport and Cut Costs
Cokal Limited has partnered with Cratus Group to establish an Infrastructure Joint Venture aimed at significantly expanding coal transport capacity and efficiency, supporting a ramp-up in metallurgical coal production at the BBM mine.
- Strategic Partnership formed between Cokal and Cratus to enhance coal logistics
- Infrastructure Joint Venture to increase coal transport capacity and lower operating costs
- Acquisition and customisation of self-propelled vessels for Barito River coal transport
- Upgrades planned for Krajan Jetty including expanded loading facilities and dredging
- Medium-term plan includes building up to 18 vessels aligned with production growth
Strategic Partnership to Unlock Value
Cokal Limited (ASX: CKA) has announced a significant step forward in its operational capabilities through a Strategic Partnership with Cratus Group. Central to this collaboration is the creation of an Infrastructure Joint Venture (IJV) designed to materially increase the capacity and efficiency of coal transport infrastructure serving Cokal’s BBM metallurgical coal project in Central Kalimantan, Indonesia.
This partnership aims not only to facilitate the scheduled ramp-up of coal production but also to reduce the freight-related operating costs per tonne, a critical factor in enhancing the overall competitiveness of Cokal’s coal assets.
Infrastructure Joint Venture: Expanding Capacity and Efficiency
The IJV has already made tangible progress by acquiring two self-propelled coal vessels equipped with onboard cranes, enabling immediate operational use even before infrastructure upgrades are completed. These vessels will undergo refitting to meet Indonesian classification standards, leveraging Cratus’s strong local connections to ensure a smooth transition.
Looking ahead, the IJV plans to commission custom-built vessels tailored to Cokal’s specific requirements. These vessels, with a capacity of approximately 2,500 tonnes and a shallow draft of 2 meters, will be constructed in sets to align with the mine’s production ramp-up. The medium-term vision anticipates a fleet of around 18 vessels to handle increased volumes efficiently.
Upgrading Critical Infrastructure
Complementing the vessel acquisition, the Krajan Jetty will undergo significant upgrades. These include expanding the jetty to berth three vessels simultaneously, installing a high-capacity conveyor system capable of loading 1,000 tonnes per hour, and dredging to address silt accumulation. Additionally, the jetty’s footprint will be enlarged to accommodate larger coal stockpiles, and road access to the mine will be improved to streamline logistics.
The IJV’s logistics plan involves transporting coal from Krajan Jetty via the Barito River to intermediary stockpiles before consolidating cargo onto larger barges for transfer to seagoing vessels at Taboneo Anchorage. This multi-stage approach is designed to optimise loading times and reduce bottlenecks in the supply chain.
Implications for Cokal’s Production and Costs
CEO Karan Bangur emphasised the strategic importance of these developments, highlighting that enhanced river transport capacity and specialised barges will not only support higher coal volumes but also drive down FOB costs per tonne. This cost efficiency is vital as Cokal seeks to establish itself as a competitive metallurgical coal producer on the global stage.
While the forward-looking statements underscore optimism, the company acknowledges inherent risks including regulatory approvals, market conditions, and operational challenges. Nonetheless, the Infrastructure Joint Venture represents a pivotal move to unlock value and scale production sustainably.
Bottom Line?
Cokal’s infrastructure overhaul with Cratus sets the stage for a more efficient, cost-effective coal supply chain—watch closely as production scales up.
Questions in the middle?
- How will the timing of vessel deliveries align with BBM’s production ramp-up milestones?
- What financing terms have been secured for the custom-built vessels and infrastructure upgrades?
- How might regulatory or environmental factors impact the dredging and jetty expansion plans?
