Cokal holds shares in the following Indonesian coal assets in Central Kalimantan, each with known resources of metallurgical coal.
60% of the Bumi Barito Mineral (BBM) project located in Central Province, Kalimantan, Indonesia. The BBM project area is 14,980ha; 75% of PT Tambang Benua Alam Raya (TBAR) which owns an exploration tenement covering an area of approximately 18,850ha in Central Province, Kalimantan, Indonesia. This tenement is located adjacent to and southeast of the BBM project; 60% of the Borneo Bara Prima (BBP) project located in Central Province, Kalimantan, Indonesia. The BBP project area is approximately 13,050ha; 75% of the Anugerah Alam Katingan (AAK) project. This project is also located in Central Province, Kalimantan, Indonesia and has an area of approximately 5,000ha. AAK is currently on 'on-hold' status by Provincial Police Department (Polda Kalteng). The Police have investigated a dispute over the ownership of AAK pre-dating Cokal's interest in the Project. Cokal is an aggrieved party and will await the outcome of the Police investigation.
There was no change in these shareholdings during the quarter. BBM, TBAR, BBP and AAK are located adjacent to Indomet's extensive coking coal tenements. The Company is currently focussed on the development of the BBM Project.
Bumi Barito Mineral (BBM) Tenement
BBM's permit covers an area of 14,980ha with multiple seams of high quality metallurgical coal. BBM has regulatory approvals in place including: Mining Licence for 20 years with two further extensions of 10 years each
Environmental approval for a mining rate of 6Mt per annum
Port construction approval
Forestry Permit to commence mining activity
RKAB approval of its annual plan
BBM will be the first area to be mined by Cokal commencing in 2020.
BBM is dissected by the Barito River, which cuts through the tenement in a north-south trend. Almost the entire IUP contains coal-bearing sediments with open cut mineable areas controlled by three major fault systems. Coal analyses from more than 130 outcrops on the west side of the Barito River indicate that it contains premium quality anthracite and PCI coals. This coal does not currently form part of the stated BBM coal resources and therefore provides significant potential for future expansion of BBM resources.
Approval is being sought to extend the mining approved area into the eastern part of Pit 2. No exploration activity or mining production was conducted by Cokal at BBM during the quarter. However the five year mine plan was updated to form the basis for calling mining tenders. Tenders were called on 14 February 2020.
Tambang Benua Alam Raya (TBAR) Tenement
TBAR's exploration authority covers an area of 18,850ha immediately adjacent to and south of Cokal's BBM tenement. Outcrop mapping of four seams over 17km strike length indicates a substantial resource of high grade coking coal in this deposit. It is believed these seams correlate to the B, C, D and J seams in the adjacent BBM deposit. Extension of the IUP for exploration was received on 28 February 2020. Over 80% of the tenement area is available for exploration (20% being forestry area). An exploration plan is being prepared to evaluate the tenement's resource and to delineate Resources and Reserves under the JORC code. This will enable submission of an application for a Production and Operation IUP within two years. The Production and Operation IUP will be equivalent to a mining licence. No exploration activity or mining production was conducted at TBAR by Cokal during the quarter
Borneo Bara Prima (BBP) Tenement
Cokal's BBP project covers 13,050ha in Murung Raya Regency, Central Kalimantan. BBP has been granted an Exploration Forestry Permit (IPPKH) and has been confirmed on the Central Government's Clean and Clear list. The IUP was transferred to the Central Government where it now awaits approval to be upgraded to a mining licence (Production and Operation IUP). A business licence decree for operation foreign mining production (IUP OP PMA) from the Capital Investment Coordination Board Centre (BKPM) was received in Q1 2019. Work plans and the budget (RKAB) 2019 have been submitted to the government (Directorate General Minerals and Coal). No exploration activity was conducted in BBP during the quarter.
Anugerah Alam Katingan (AAK) Tenement
Cokal's AAK project covers 5,000ha in Central Kalimantan. Applications for the Exploration Forestry Permit (IPPKH) and Clean and Clear Certificates continue to be processed. Cokal continues to monitor the progress of the regulatory upgrade approvals for AAK. No exploration activity was conducted on AAK during the quarter.
Personnel
In January 2020 Masruri Yahya joined Cokal as General Manager Mines. He has in his team an experienced operations manager, senior mining engineer, senior geologist/exploration manager and surveyors and is supported by experienced executives. Masruri commenced weekly management meetings to give structure to the necessary decision making leading up to the initiation of mining in BBM and the exploration of TBAR. This has made the following activities progress in an efficient manner.
BBM Project Activities
During the quarter a detailed Bathymetric Survey of 400km of the Barito River was completed jointly by Cokal and HSM Marine. The area surveyed included the three shortlisted ISP and barge loading sites at Muara Lahung and the bridge at Muara Teweh. The detailed survey will provide critical information required for infrastructure development contracts.
As announced in October 2019, during detailed surveying around Pit 3 a disused 10 to 11m wide logging road was identified and traced to connect to another logging road now in use to transport coal and timber to ports 165km down river from Cokal's planned river port at Krajan. The disused logging road is 48km to join the road now in use, which runs another 45km to the existing port at Bumban. The length of the total road is approximately 93km depending on which site is selected for the Intermediate Stockpile and barge loader.
Contact:
Domenic Martino
Email: dmartino@cokal.com.au
About Cokal Limited
Cokal Limited (ASX:CKA) is an Australian listed company with the objective of becoming a metallurgical coal producer with a global presence. Cokal has interests in four projects in Central Kalimantan, Indonesia, which are considered prospective for metallurgical coal.
Forward Looking Statements
This release includes forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as 'may', 'will', 'expect', 'intend', 'plan', 'estimate', 'anticipate', 'continue', and 'guidance', or other similar words and may include, without limitation statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.
Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the company's actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of resources or reserves, political and social risks, changes to the regulatory framework within which the company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.
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Although the company attempts to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be anticipated, estimated or intended, and many events are beyond the reasonable control of the company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in this release are given as at the date of issue only. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.
COKAL LIMITED 
