Cokal Limited has selected PT Harmoni Panca Utama (HPU) as the preferred tenderer to provide contract mining services for the development and mining of Cokal’s BBM coal project in Indonesia.
Aahana Mineral Resources SDN BHD (Cokal’s largest shareholder), through its experience and influence in developing and operating coal assets in Indonesia, significantly contributed to the selection process, Cokal said.
BBM is in the Central Province of Kalimantan, and is Cokal’s most advanced project. It has a mining lease area of 14,980 ha and a remit to produce premium coking coal and pulverised coal injection products for the nearby Asia steel markets.
Through its Indonesian subsidiary, PT Bumi Barito Mineral, Cokal has agreed to contract HPU for a period of five years to provide services such as open-pit overburden removal, provision of the required mining fleet and associated equipment, and coal hauling from in-pit to near-out-of-pit intermediate stockpile facilities.
HPU, one of the largest mining services companies in Indonesia, Cokal says, has agreed to mobilise upon receiving notice from Cokal to do so.
“The appointment of HPU remains subject to finalising formal contracts,” Cokal said. “However, Cokal’s commercial team have negotiated the key commercial terms, which are substantially attractive for Cokal, thus providing the opportunity to achieve favourable profit margins to be enjoyed by Cokal shareholders.”
Cokal Jakarta-based Director, Karan Bangur, said: “The team we have brought together at Cokal have extensive experience in the start-up and logistical solutions for coal mines in Indonesia. They have first-hand experience with major contractors and have ensured this award has been concluded on competitive terms with a strong contractor.
“The use of contract mining enables reduction of upfront capital requirements for commencement of mining and expedites the development of BBM. The company looks forward to working with HPU to maximise value from the production of premium export quality coking coal and PCI products.”