The first barges have arrived on site and have been loaded. They will travel down the Barito River to take the coal to an intermediate stockpile downstream at Muara Teweh where domestic customers can collect the coal on larger barges.
Negotiations are nearing completion with a number of domestic buyers.
About 1200 tonnes will arrive at the intermediate stockpile at Muara Teweh before the end of the week as four barges have been loaded and have begun travelling down the Barito River.
Cokal plans to produce about 10,000t per month from the B, C and D seams at BBM close to the Barito River.
Its initial evaluation study based for its coal assets in Central Kalimantan, Indonesia, has estimated a total value of US$209million, giving a value of $127million for Cokal's share in each of the projects.
The valuation is based on the current consensus long term price for hard coking coal of $128/t and $90/t for PCI coal.
BBM's coal seams are naturally exposed at the surface, and therefore the initial mining stages for all open pits involves very low volumes of overburden material to be removed from the coal seams.
