Image of high quality coal from Central Kalimantan
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Indonesia-focused coal company Cokal Ltd (ASX:CKA) has signed a hauling services agreement with local company PT Stanley Mitra Abadi for the transportation of material including coking coal and PCI coal from its 60%-held Bumi Barito Mineral (BBM) mine in Central Kalimantan.

The contract – which lasts for three years – will support Cokal’s production ramp-up at BBM – which has a JORC mineral resource estimate of 266.6 million tonnes – as Stanley is set to deploy up to 100 units of 8×4 spec 42-tonne payload trucks take coal from the project’s Pit 3 to the Batu Tuhup Jetty.

The program will kick off on October 14, with 20 trucks to begin hauling from that date, with additional trucks added in-line with the scheduled ramp-up.

Running alongside this is another infrastructure development: the commissioning of a semi-permanent steel bridge on the Mohing River crossing to better enable the Stanley trucks to make their journey, particularly during rainy seasons.

Construction of this bridge has already begun, was an anticipated completion by December 2024, with the current wood bridge remaining operational for haulage until then.

Cokal shares have moved slightly down on the news, and at 15:00 AEST, they were trading at 7.6 cents – a fall of 1.30% since the market opened.

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