Cokal has resumed mining and hauling at its 60%-owned Bumi Barito Mineral project after delayed Indonesian regulatory approval, but exceptionally low Barito River levels have pushed the next shipment to a tentative mid-November date. The company also bought three years of extra time on BBM's US$20 million repayment, while quarter-end cash stood at just US$193,000.
- BBM mining and hauling resumed in October after Phase 2 RKAB approval
- Next coal shipment tentatively scheduled for mid-November, subject to river conditions
- US$20 million ICT repayment extended to January 2030
- First 20 million tonnes marketed by ICT at a 6% fee
- US$193,000 cash and US$2.568 million in undrawn facilities at quarter end
BBM restarts after regulatory delay
Cokal Limited (ASX:CKA) is attempting to restart its main Indonesian coal operation after a quarter in which mining was largely reduced to maintenance and preservation work. The 60%-owned Bumi Barito Mineral project received Phase 2 approval under Indonesia's annual Work Plan and Budget in mid-September, but the timing left little room for meaningful activity before the 30 September quarter ended.
Preparatory work was completed after quarter end and mining recommenced in October. Hauling also resumed, although no barging took place during the quarter or after quarter end because low water levels restricted navigation along the Barito River. The next export shipment is tentatively planned for mid-November, subject to river conditions and a suitable navigational window.
River levels now gate coal shipments
The operational interruption was compounded by a prolonged dry season across Central Kalimantan. Cokal said reduced water depths in upstream sections of the Barito system have restricted barge movements and loading capacity, with some waterways temporarily unnavigable. The company cited industry reporting that the conditions could disrupt about 3.0 million to 3.7 million tonnes of regional coal shipments each month, framing the bottleneck as an industry-wide logistics problem rather than a constraint unique to BBM.
Road and site infrastructure continued to advance despite the restricted mining schedule. Petrosea progressed upgrades linking Krajan Jetty to Pit 3 and Pit 3 to KM52, while Cokal completed additional worker camps, workshop facilities and offices at the jetty and mine site. Those works should support mine-to-river logistics, but the immediate test is whether production and stockpiles can be moved once water levels improve.
The quarter delivered no coal sales, although Cokal received funds from the previous quarter's approximately 10,200-tonne export shipment to China. Domestic deliveries are also being arranged for later this year, but their timing remains dependent on river levels and available barging capacity. The company is reassessing its 2026 production plan after the regulatory delay and hydrological disruption. The earlier Phase 2 RKAB approval had been associated with a planned mining restart and 10,000-tonne shipment, but this quarter's report shows how quickly those schedules can be overtaken by operating conditions.
Debt relief carries a production commitment
BBM has gained breathing room on its financing, but not a free pass. International Commodity Trade agreed to extend repayment of its US$20 million capital sum from 15 January 2027 to 15 January 2030. Selected monthly fees have also been deferred until 1 January 2028, with interest accruing at 10% per annum during the deferral periods. The arrangement resembles the US$20 million debt extension reported in September, with the latest filing detailing the continuing terms.
In exchange, ICT will market at least the first 20 million tonnes produced from BBM, receiving its existing 6% marketing fee on coal sold or marketed under the agreement. The extension improves the timing of a large repayment obligation, while the deferred fees and production-linked marketing commitment add costs that will be tested against future output and realised coal prices. Cokal ended the quarter with US$193,000 in cash and US$2.568 million of undrawn facilities. Based on the quarter's reported outgoings, the company calculated roughly three quarters of available funding, a measure that may change materially as mining, barging and production spending resume.
Bottom Line?
Cokal's near-term story now turns on two variables outside its immediate control: whether the Barito River becomes navigable and whether resumed mining can generate cash before available funding tightens.
Questions in the middle?
- Will river conditions allow the tentative mid-November shipment to proceed?
- What production and cash generation can BBM achieve after the delayed 2026 restart?
- How much interest will accumulate on deferred ICT fees before January 2028?