Cokal announces that port facilities for the Bumi Barito Mineral (BBM) Coal Project have received construction and operation approval. The Department of Transport has issued the port permit for the facilities in and on land adjacent to the Barito River, in Murung Raya Regency, Central Kalimantan.

The approval is for an initial 15 year period comprising a five year construction window and a 10 year operational period. Cokal expects that the 2 million tonnes/annum operation will require a 12 month construction period, leaving a 14 year operational period under the approval, which also provides for BBM to obtain future extensions to the operational period to support activities beyond the initial 15 year period.

The port location approval is for an area of approximately 150 hectares and includes the 37 hectare port area currently being sought in the forestry permit process. The area approved for the port includes the land necessary for the initial 2 million tonne capacity scenario as identified in the definitive feasibility study, in addition to the area necessary for the expansion up to the 6 million tonne capacity scenario. It is estimated that there will be an access of about 110 hectares in the approved port area which will allow for future design optimization and expansion opportunities beyond the 6 million tonnes scenario.

Cokal’s CEO Peter Lynch says, “The completion of the port approval process is a fantastic outcome following several months of working closely with the Department of Transport. The granting of the port construction and operation approval provides certainty to the port location and now allows Cokal to start construction of the port facilities as soon as the forestry permit is issued.”

Cokal has received the In-Principal Forestry Permit, the last major stage prior to the issuance of the Borrow and Use of Forest Area Permit which allows the company to start construction and mining. Cokal has fulfilled all of the administrative obligations necessary to obtain the full permit, nevertheless, with process changes due to the amalgamation of the Environment and Forestry Department under the new Government delays occurred. These have now been overcome and the new combined department has completed their assessment positively and passed the necessary documentation to the Investment Coordinating Board for the final phase of the approval process.

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