Cokal (ASX:CKA) loads up the barges for Indonesian coking coal cash
March 26, 2024Cokal has received its due payment and is now busily loading up two barges with 7500 tonnes of high-grade product from the Bumi Barito Mineral metallurgical coal mine in the Central Kalimantan province of Indonesia.
The pair of bulk-tonnage barges are destined for Sumbar Global which will pay the remaining half for the shipment before the boats reverse-course back to the Cokal jetty and get loaded up again for more sales to a local smelter.
Sydney and Jakarta-based producer Cokal expects both recipients will become ongoing customers, and it has the capacity to deliver after securing the barges for a 12-month charter to continuously ship off product and return with revenue.
The vessels are part of a collection which serves some of the largest operators along the Barito River route, with the Cokal pair also permitted to directly load cargo onto a mother vessel at open sea anchorage.
A 14-to-16-day turnaround time will ensure an average of two trips a month for a combined 14,000-15,000 tonne capacity, a figure marked for a raise as more barges are brought into the fleet.
The project jetty and upgraded hauling road towards it can cater for large volumes, and Cokal is looking to an expansion of its integrated supply chain infrastructure and to cement itself as a reliable and sustainable supply source for domestic smelters and foreign shores.
The addition of barges to the company’s supply chain completed its connection to the coal products market, Cokal Chairman Domenic Martino shared after the chartering.
“The company is now capable of expanding this capacity with more barges to cope with anticipated increased production and sales,” he said.
The current 266.6 million tonne JORC resource was last updated in 2016, with no recent exploration activity in the field at Bumi Barito.
The deposit’s resource and reserves are currently restrained to the east of the Barito River, although analysis over more than 130 outcrops on the western side has indicated there are extensive quantities of quality coal products to be found in the very same seams.
But for now, Cokal has sales on its mind, and is firmly in production to feed hungry local mills and a thriving Indonesian economy.
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