Cokal (CKA) has appointed an additional contractor for the Bumi Barito mineral coking coal mine site in Indonesia.
The site, held jointly by Cokal and the Government of Indonesia, is being rapidly developed. In its latest move to push forward with the project, Cokal has appointed PT. Citarum Borneo Quantum (CBQ) as its next mining contractor to provide mining services at the site.
The appointment was made via a letter of award on agreed terms. As part of its contract, CBQ will perform open pit overburden mining services, with equipment already en route to the site.
CBQ has been appointed for an initial one-year period, with the option for a one-year extension.
With the new appointment, Cokal aims to ensure the mine is able to stick to its time schedule and provide a lower-cost alternative to Cokal’s other mining services provider, PT. Harmoni Panca Utama (HPU).
Cokal will now undertake its own coal mining activities, with the potential to increase annual production capacity.
Initial saleable coal production from the mine remains on track for September 2022.