The permit is critical for the use of larger capacity equipment which will allow for high-impact exploration drilling and will move the project closer to its production phase, Cokal executive chairman Peter Lynch said.
The company expects to complete and announce the results of its BBM pre-feasibility study this month and has also substantially completed its environmental impact statement (EIS), he said.
“The approval of the forestry permits from the Indonesian government means Cokal can now use large drills in order to convert the previously announced 200-350 million tonne Mt Exploration Target to JORC compliant coal resources,” Lynch said.
“This permit allows Cokal to develop a roadway system within BBM for better access of people, supplies and medical care. As well, Cokal will commence a survey of minesite infrastructure, including the barge loading port, mine offices accommodation and maintenance workshop.
“The exploration forestry permit and the EIS approval are also critical prerequisites for applying to convert the BBM exploration IUP (mining business) licence into a production IUP licence. Cokal’s EIS has made significant progress, allowing the company to move quickly towards applying for the mining licence.”
The pre-feasibility study provides a number of options for developing an open-cut coal mine in BBM and the associated infrastructure and coal transportation.
The completion of these studies will enable the company to make investment decisions and ultimately commence construction of the mining operation, according to Cokal.
Executive director Pat Hanna said: “The approval from the Forestry Department confirms Cokal’s strategy in developing a coking coal open cut mine in Indonesia.
“We have always believed this is the right place to operate, because the system works here in Indonesia if you follow the rules.
“We now have a coal project which is legally owned by Cokal … and the licence has no outstanding legal ownership issues as it was approved by the central government and listed on the clean and clear list.
“There are not many places in the world where you can develop a coal mine from greenfields exploration through to mine production in three to four years.
“Our workforce on site at BBM is entirely Indonesian skilled people who are conducting activities to international standards and in accordance with the JORC code as required by the Australian Securities Exchange.”
