Cokal Limited announces acquisition of a fleet of coal barges

Cokal Limited announces acquisition of a fleet of coal barges

SYDNEY, AUSTRALIA: Cokal Limited (ASX: CKA) has taken an important step to secure capacity for coal transport via the acquisition of a fleet of coal barges.

PT Barito Samudera Nusantara (PT BSN), a newly incorporated company established for the purpose of acquiring the barges and tugboats, has been used to effect the acquisition.

Cokal Limited is the 100% shareholder of PT BSN. Total cost of the first-stage of barge acquisitions is estimated at up to US$1.5m, (includes estimates of refurbishment costs and working capital).

PT BSN will operate as the exclusive logistics support provider for the Bumi Barito Mineral (BBM) (Cokal 60%) and TBAR (Cokal 75%) coal mines. PT BSN will provide competitive transport costs to BBM and TBAR, in-line with market pricing. In addition, Cokal will realise the benefit of 100% of the operating profits from PT BSN.

Operational Details

  • Barges will be used for transportation of coal from mine mouth Krajan Jetty to Batu Tuhup permanent jetty.
  • Provides guaranteed capacity and availability of conventional shallow draft barges (min. operating depth 2.5m with full load) for coal transport, without any dependence on external service providers.
  • Fleet expansion planned by adding additional barges and tugs to increase coal transportation capacity from Krajan jetty to Batu Tuhup jetty.
  • PT BSN will also seek to expand its operations to operate large capacity barges (200ft – 230ft) to be able to transport coal from the Batu Tuhup Jetty to the Intermediate Stockpile (ISP).
  • This expansion will ensure uninterrupted coal transport capacity at competitive pricing.
  • This will also allow continuous usage of Krajan jetty to transport coal, alongside the road haulage route, from Pit 3 to Batu Tuhup jetty. This combined capability will enable BBM to manage its logistics flow more efficiently and sustainably.

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 considered prospective for metallurgical coal.

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