Cokal has announced that construction of the Batu Tuhup permanent jetty is tracking well, with the weighbridge works having been 70 per cent completed.
The metallurgical coal developer also revealed that load cells and other materials have been dispatched to the site, with the installation expected to be completed by end of the month.
Conveyor fabrication works remain ongoing and structural works involving 75 tonnes (t) of steel have been completed. An additional 25t of fabrication is also currently in progress.
Cokal revealed last week that current hauling of coal product from the Bumi Barito Mineral (BBM) metallurgical coal mine to the Batu Tuhup jetty will continue uninterrupted alongside the haul road upgrade.
The company has now announced that BBM is expected to achieve one monthly sales contract, starting from February.
Coal trading company Sumber Global Energy (SGE) remains contracted to purchase BBM product for the domestic market, but it hasn’t provided any sales yet due to its concentration on other thermal coal projects.
“This has not impacted Cokal’s sales opportunities as there are a number of parties both domestic and international seeking BBM product,” Cokal said.
“The underlying financial arrangement is based on SGE’s coal sales only and as such does not affect Cokal’s financial and coal sales profile.”
BBM’s ramp-up of saleable production includes forecasted domestic and export sales that depend on the best price realisation for Cokal, and the company’s previously announced offtake and marketing arrangements will continue to determine payment terms for sales.
Cokal owns 60 per cent of the BBM mine and the Indonesian Government owns the remaining 40 per cent. The mine is located in the Kalimantan Province of Indonesia.
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