- Cokal (CKA) has finalised coal transportation and equipment rental contracts for the development of its Bumi Barito Mineral coal mine in Indonesia
- The latest signed contracts with its chosen mining services supplier are for coal transportation and equipment rental
- The agreements are expected to set Cokal back some US$373 million (approximately A$481.8 million) over five years, which the explorer says it will fund with existing debt facilities and eventual coal sales
- Cokal says the remaining fuel supply and drill contracts are under final negotiations while long-haul coal transportation contracts have “essentially” been agreed
- Cokal is up 1.45 per cent following the announcement, trading at 7 cents per share
Cokal (CKA) has finalised coal transportation and equipment rental contracts for the development of its Bumi Barito Mineral coal mine in Indonesia.
It takes the company’s total secured mining production contracts with Harmoni Panca Utama to three after entering a binding agreement with the service provider in February.
The coal transportation and equipment rental contracts are expected to set Cokal back some US$373 million (approximately A$481.8 million) over five years, which the company says will be funded from coal sales.
Cokal has indicated it will initiate a drawdown of its US$20 million (roughly A$25.8 million) debt finance facility to meet initial payment obligations.
It forms part of Cokal’s border endeavours to commence development at Bumi Barito, for which it has sufficient approvals to commence, but still requires finalisation on certain operational and logistical elements.
In terms of remaining items, Cokal says the fuel supply contract and drill and blast contracts are under final negotiations and the long-haul contract for coal transportation has “essentially” been agreed.
The company has not yet indicated a predicted start date for the mine.
Cokal is up 1.45 per cent following the announcement, trading at 7 cents per share at 12:11 pm AEDT.