Cokal Reports Mining Resumption, Export Shipment, and Infrastructure Progress

Mining Resumes at BBM with Export Milestone

Cokal Limited (ASX:CKA) has restarted mining operations at its Bumi Barito Mineral (BBM) project in Central Kalimantan following receipt of the 2026 RKAB regulatory approval. This milestone marks a transition from operational restart activities to active production, with PT Harapan Mitra Lestari (HML) resuming mining under a revised production plan currently under review by Indonesian authorities.

During the June quarter, BBM successfully exported approximately 10,200 tonnes of Low Vol Hard Coking Coal (LVHCC) to China, demonstrating the functionality of its logistics chain despite challenging market conditions. The shipment was executed through PT Sumber Global Energy Tbk and negotiated by M Resources Group, reflecting Cokal’s ongoing efforts to secure both domestic and export sales amid subdued global steel demand and elevated freight costs.

Infrastructure Upgrades Target Production Growth

To support increased production, Cokal continued infrastructure enhancements at Batu Tuhup Jetty, including road improvements, the Bulk Loading Conveyor (BLC) project, and installing a 250 tonnes per hour roller crusher aimed at improving coal sizing consistency and loading efficiency. Parallel development of an all-weather haul road progressed with PT Petrosea Tbk as the principal contractor, involving earthworks, segment construction, and mobilisation of heavy equipment to improve haulage reliability.

A key operational improvement was the successful first controlled blast at Pit 3, establishing drill-and-blast techniques as a standard practice to enhance rock fragmentation and mining productivity. Hauling operations recommenced, with coal stockpiled strategically to mitigate river transport disruptions and ensure steady cargo availability.

Permitting and Regulatory Progress for Underground Mining

Cokal advanced underground mining plans with ongoing preparation of the Environmental Impact Assessment (AMDAL) and Forest Area Utilisation Permit (PPKH). Engineering collaboration with underground mining contractor CBI continues, targeting environmental permitting completion by Q4 2026 and initial underground activities in early 2027. Meanwhile, BBM submitted a revised RKAB application seeking approval for increased production capacity, which remains under regulatory review.

Financial Position and Market Conditions

Financially, Cokal reported a cash balance of US$194,000 at quarter-end with undrawn financing facilities of US$2.56 million, supporting ongoing production and development expenditures. The company spent US$1.4 million on production activities during the quarter, balancing operational costs amid subdued metallurgical coal markets. Global pricing remains pressured by weak steel demand, cautious Chinese procurement, and geopolitical tensions in the Middle East, although resilient steel production in India provides some market support.

Cokal maintains significant ownership in four Indonesian metallurgical coal tenements; BBM, Tambang Benua Alam Raya (TBAR), Borneo Bara Prima (BBP), and Anugerah Alam Katingan (AAK); with integrated logistics provided by wholly owned Barito Samudera Nusantara (BSN). The company’s immediate focus is on BBM’s production growth and TBAR resource delineation, leveraging its logistics arm to enable efficient coal movement.