PERTH (miningweekly.com – Coal developer Cokal has completed the environmental-impact study (EIS for its Bumi Barito Mineral (BBM coal project, in Indonesia, with production now slated for early 2014.
The BBM project has an exploration target of between 200-million and 350-million tons, and a Joint Ore Reserves Committee-compliant resource of 77-million tons.
It was proposed that the BBM project would produce up to 6.5-million tons run-of-mine coal a year, to provide 5.6-million tons a year of saleable product. Production was scheduled for the first half of 2014.
Executive chairperson Peter Lynch said on Monday that the BBM project's prefeasibility study provided the company with confidence that it was a technically viable and economically compelling project, in a commodity with a great future.
"We are now focused on completing all the necessary applications and approvals required to take the project into production.
"Already we have commenced further detailed work and studies in areas where we have identified critical path scheduling issues and technical requirements to start production from BBM in early 2014," he added.
The EIS, which complies with Indonesian environmental and mining regulations, covers the operations planned for the Eastern block of the BBM project, for up to six-million tons a year, and has been submitted to the Central Kalimantan provincial government.
The approval of the EIS would enable the upgrade to the tenement from an exploration to a production site. Approval was expected shortly, allowing for construction to start in the fourth quarter of 2013.
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