Cokal Targets Mid-Year Mining Resumption with 10,000 MT Coal Shipment

Regulatory Green Light Enables Mining Reactivation

Cokal Limited (ASX:CKA) has received approval for its RKAB (Rencana Kerja dan Anggaran Biaya) submission, a critical regulatory step that clears the way for near-term mining operations at its Bumi Barito Mineral (BBM) project in Central Kalimantan, Indonesia. This approval underpins the company’s operational plans and ensures continuity amid Indonesia’s evolving regulatory landscape.

Following this, Cokal has kicked off site preparation activities including pit dewatering and equipment mobilisation, setting the stage for mining operations to resume by mid-June. Hauling has already recommenced, with coal stockpiled at Krajan jetty awaiting river conditions suitable for barging to the export point at Batu Tuhup Jetty.

Operational Milestones and Infrastructure Upgrades

A notable operational highlight is the successful completion of controlled blasting at Pit 3 on 4 June. Conducted by Sun Mining Services in coordination with mining contractor PT Harapan Mitra Lestari, this first drill-and-blast marks a key productivity milestone expected to improve fragmentation and mining efficiency.

Infrastructure enhancements at Batu Tuhup Jetty are progressing, with Rexline Engineering set to resume installation of a Bulk Loading Conveyor and a 250 tonnes per hour roller crusher system. These upgrades aim to boost loading efficiency and ensure more consistent coal quality ahead of shipment.

Underground Mining Permitting Advances

Cokal is advancing its underground mining development through regulatory channels, targeting completion of environmental permitting by Q4 2026. Preparations include Environmental Impact Assessment documentation and Forest Area utilisation approvals with Indonesia’s Ministry of Forestry. The underground mining contractor, CBI, is poised to begin on-site preparatory work in early 2027, contingent on regulatory milestones.

Haul Road Upgrade to Support Long-Term Logistics

The company is also progressing a haul road upgrade project with PT Petrosea Tbk, designed to support haulage capacity of around 3 million tonnes per annum. Construction is underway, focusing on Segment B, with phased equipment mobilisation expected to accelerate progress through June. This all-weather road upgrade is intended to enhance operational reliability and logistics efficiency.

Coal Shipment and Market Conditions

Cokal is finalising an export shipment of approximately 10,000 metric tonnes of Low Volatile Hard Coking Coal for delivery by the end of June, facilitated by M Resources Group and PT Sumber Global Energy. While the global coking coal market remains subdued due to soft steel demand and economic uncertainty, structural demand for this coal type persists given its steelmaking importance.

Domestic sales discussions for July-August shipments are ongoing, reflecting cautious procurement strategies among buyers amid current market softness. Regulatory adjustments in Indonesia have led to more calibrated production allocations, requiring operators like Cokal to align closely with approved volumes.