PERTH (miningweekly.com) – Coal developer Cokal has launched an update to the definitive feasibility study (DFS) for its Bumi Barito Minerals (BBM) coking coal project, in Indonesia.
The company told shareholders on Tuesday that, recently, the cost of construction materials, power and fuel had reduced significantly, as the price of commodities reduced, particularly for thermal coal.
This reduction in cost also translated to reduction in contract mining rates, which Cokal said was compounded by the downturn in thermal coal mining activities in Indonesia.
“This is exciting times in our industry as our expectations for a recovery of coking coal pricing have been exceeded by far,” said Cokal chairperson Peter Lynch.
“It is no doubt that recent events will greatly improve the value of BBM and its attractiveness to investors looking to enter the coking coal market via a project which has all of its approvals ready in place to commence construction.”
A recent scoping study into an underground mine at BBM has also indicated that the project could be feasible, with the study identifying the potential for four large underground mining blocks.
Edited by: Creamer Media Reporter
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