The approval of the Environmental Impact Statement (EIS) covers the integrated development of the BBM mine, haul road and river barging terminal.

“The approval of the EIS is a major milestone for the BBM project and is the culmination of a significant effort over the last 18 months by the Cokal team to work with the regency and provincial government to deliver the final document,” Cokal executive chairman Peter Lynch said.

Cokal plans to develop BBM in two stages; an initial 2Mtpa direct ship operation with an expansion of up to 6Mtpa at a later stage.

A prefeasibility study highlights the project to be developed as a low-cost metallurgical coal project.

The approval keeps Cokal on track to start construction in October 2013 and begin production in the first half of 2014.

The EIS was overseen by CDM Smith, a global engineering and environmental consultancy supported by numerous specialist Indonesian consultants. The study commenced in late 2010 and included environmental and social baseline studies and assessments, as well as community consultation with local villages and communities.

“Not only does the study comply with Indonesian regulations, but Cokal’s EIS sets the benchmark for environmental compliance with international standards for an Indonesian coal project,” Lynch said.

The company last week announced the appointment of Garry Keilenstyn as Indonesian country manager and project director.

Keilenstyn has lived and worked in Indonesia since 1990 and has a strong track record for bringing projects through construction to production, particularly in the Murung Raya regency where BBM is located.

“We are excited to have a proven performer of Garry’s caliber joining us at Cokal at such a critical phase as we finalize our definitive studies for the BBM project ahead of targeted construction commencement in Q4 2013,” Lynch said on Friday.

Keilenstyn will start work at Cokal on May 1.