Cokal organises bridging loan for BBM project

INDONESIAN metallurgical coal group Cokal has fully drawn the $3.5 million bridging loan from Platinum Partners as it seeks to develop its Bumi Barito Mineral coal project in Central Kalimantan.

Lou Caruana

The parties are working to finalise the project funding facility offered by Platinum Partners.

The amount of the initial facility will be in the order of $90 million, which the company claims will be sufficient to fund construction and commissioning of the 2 million tonne per annum BBM project.

It would also cover Cokal's general working capital requirements during this phase of development.

The bridging loan can be rolled into the facility once it is in place.

The BBM coal project covers an area of 14,980 hectares and is situated in the prospective metallurgical Upper Barito Coal Basin, Regency of Murung Raya.

It is adjacent to BHP Billiton’s Indomet Coal Joloi project in Murung Raya Regency.

BBM has a JORC coal resource of 261Mt in multiple seams comprising 10.5Mt measured, 13.5Mt indicated and 237Mt inferred coal resources.