Cokal Limited (ASX:CKA) announces coal transport infrastructure expansion

Cokal Limited (ASX:CKA) has announced the expansion of its coal transport infrastructure to support the ramp-up of BBM metallurgical coal production. The company has entered into a hauling services agreement with PT Stanley Mitra Abadi (Stanley) and commissioned a semi-permanent steel bridge on the Mohing River crossing.

Executive Commentary on Coal Transport Infrastructure Expansion

BBM has entered into a hauling services agreement with PT Stanley Mitra Abadi (Stanley), a local coal hauling contractor, to transport coal products from the BBM Mine. The agreement involves the deployment of up to 100 Units of 8x4 spec 42 tonne payload trucks to transport coal from BBM Pit 3 to the Batu Tuhup Jetty. The company has also initiated the construction of a semi-permanent steel bridge on the Mohing River crossing to facilitate uninterrupted haulage road access during rainy seasons. This infrastructure expansion is crucial in supporting the scheduled ramp-up in production and ensuring efficient coal transportation.

Summary of Cokal's Coal Transport Infrastructure Expansion

Cokal Limited (ASX:CKA) has taken significant steps to enhance its coal transport infrastructure by partnering with PT Stanley Mitra Abadi and developing a semi-permanent steel bridge on the Mohing River crossing. These initiatives are aimed at supporting the ramp-up of BBM metallurgical coal production and ensuring uninterrupted haulage road access, particularly during adverse weather conditions. The company's proactive approach to expanding its transport infrastructure reflects its commitment to optimizing production capabilities and overcoming logistical challenges. Looking ahead, the completion of the steel bridge by December 2024 is expected to further bolster the efficiency and reliability of Cokal's coal transportation operations, contributing to the company's long-term growth strategy.