Cokal Limited (ASX: CKA), an Australian listed company with the objective of becoming a metallurgical coal producer with a global presence, today announced it has received crucial RKAB (Rencana Kerja dan Anggaran Biaya) approval for its Bumi Barito Mineral (BBM) Project in Central Kalimantan, Indonesia. This significant regulatory clearance supports current operational requirements and ensures the continuity of mining activities. Following the approval, the company anticipates recommencing mining operations by mid-June, contingent on the completion of site preparation and dewatering activities. Cokal is also finalising an export shipment of approximately 10,000 metric tonnes of Low Vol Hard Coking Coal, scheduled for delivery by the end of June.
The company has progressed several operational fronts, with hauling activities already resumed, moving coal to stockpiles at Krajan jetty, ready for barging once river conditions permit. A key operational milestone was achieved with the successful completion of the first controlled blast at Pit 3 on June 4, expected to enhance mining efficiency and productivity. Infrastructure upgrades at the Batu Tuhup Jetty are also underway, including road widening, installation of a Bulk Loading Conveyor, and a 250 TPH roller crusher system, designed to improve loading efficiency and coal quality consistency.
Looking ahead, Cokal’s underground mining development is advancing through the regulatory process, with environmental permitting targeted for completion by Q4 2026. Furthermore, the company continues its haul road upgrade project with PT Petrindo Jaya Kreasi Tbk, with PT Petrosea Tbk appointed as the main contractor. This all-weather haul road is designed to support an expected haulage capacity of approximately 3 million tonnes per annum, with construction activities, particularly in Segment B, currently progressing with equipment mobilisation.
The global coking coal market continues to experience subdued conditions due to soft steel demand, maintaining pressure on hard coking coal pricing. However, Low Vol Hard Coking Coal retains structural demand due to its importance in steelmaking. Cokal remains committed to regulatory compliance, with an RKAB revision application planned for late June to align approved volumes with updated production requirements.
