BBM underground study proves positive

PERTH (miningweekly.com) – A scoping study into an underground mine at the Bumi Barito Mineral (BBM) coal project, in Indonesia, has indicated that the project is feasible.

In March, Cokal reported a coal resource of 266-million tonnes over four coal seams, of which some 19.5-million tonnes are considered measured and 23.1-million tonnes are indicated.

The coal resource from the seams could be economically extracted using openpit mining, and has been classified in both measured and indicated categories for four proposed openpits, designed in the BBM East Block.

As the remainder of the 67-million-tonne inferred coal resource in two of the seams is considered amenable to underground mining, Cokal completed the scoping report outlining the concept and rationalisation of a proposed underground mine plan for the East block.

The scoping study identified a potential for four large underground mining blocks using the longwall method.

Due to ASX restrictions, Cokal did not release any operating or capital cost estimates for the underground mine, but said that the results from the scoping study recommended that the project be advanced through to a prefeasibility study.

The company is now preparing a submission regarding the BBM underground mine to the Indonesian government for consideration in granting the maximum foreign ownership of 70% of the BBM for the life of the mine.

Cokal, which currently owns 60% of the BBM mine, noted that the reduced divestment requirements were introduced by the Indonesian government as an incentive to encourage the future development of coal resources.