- Metallurgical coal company Cokal (CKA) has invited contractors to tender for coal production at the Bumi Barito Mineral (BBM) project in Indonesia
- Five tier one contractors invited to tender have signed non disclosure agreements
- The contracts will commence this year and go for an estimated 5 years, with the possibility of extension
- tenders are due to be submitted in 45 days
- At market close Cokal is up 2.38 percent, trading at 4.3 cents each.
Metallurgical coal company Cokal (CKA) has invited five contractors to provide tenders to start coal production at the Bumi Barito Mineral (BBM) project in Indonesia.
Cokal owns 60 percent of the BBM mine, located in the Central Kalimantan Province, which the company says has multiple seams of high quality metallurgical coal.
As well as mining for coal, the contract is to remove overburden and interburden at the mine; and transport the coal to the Intermediate Stockpile (ISP) and barge loader at Muara Lahung.
Cokal says all five tier one contractors invited to tender have signed Non Disclosure agreements.
The contracts will commence this year and go for an estimated period of five years with options to extend.
The company says the tender reflects the board’s comfort with infrastructure and financing arrangements being put in place with China Rail and HS Marine.
Both of these companies are in the process of finalising contracts with Cokal to begin building infrastructure for the BBM mine.
In April last year, Cokal received all permits required for the BBM project, including a mining license and environmental approval.
Further contracts for additional work in relation to the mine will be tendered following the completion of detailed surveys now underway.
These include construction of the first 50km section of the haul road to Muara Lahung; the coal handling plant at the mine site; the coal handling plant and barge loader at Muara Lahung; And the barging contract from Muara Lahung to FOB Taboneo anchorage
The contractors for this current tendor are required to provide their own infrastructure and facilities on site.
The tenders are due to be submitted in 45 days.
At market close Cokal is up 2.38 percent, trading at 4.3 cents each.