Cokal Limited (CKA), an Australian listed company with the objective of becoming a metallurgical coal producer with a global presence, has announced a significant step forward in its strategic partnership with PT Petrindo Jaya Kreasi Tbk (PT Petrindo) regarding the Bumi Barito Mineral (BBM) metallurgical coal mine. The company has entered into a binding term sheet for the utilisation of shared facilities and further development of the BBM Haul Road. PT Petrindo will fund the upgrade to increase the road’s capacity and make it an all-weather route.
Under the agreement, both parties have jointly appointed PT Petrosea Tbk as the main contractor for the road development works. On-ground activities are expected to commence in October 2025. Cokal previously announced the strategic partnership with PT Petrindo on 21 March 2024, focusing on the joint development of coal transport infrastructure. This includes roads, ports, and barging.
The upgrade to the BBM Haul Road will be funded by PT Petrindo as a prepayment of future toll fees. Cokal will charge PT Petrindo for accessing the road. The toll fee will be calculated based on the Platts SS Coal FOB Australia reference price. Collection of the toll fee will start when DBK and/or BBM reach a combined transport capacity of 2 million tons or 1 July 2026, whichever occurs first.
Cokal’s CEO, Mr Karan Bangur, stated that the agreement allows Cokal to retain full ownership of the haul road and recoup all prior investments. He also noted the agreement strengthens Cokal’s financial position and deepens its partnership with Petrindo. The BBM Haul Road upgrade will continue to benefit Cokal through sustainable income from toll fees once both parties’ investments are recovered.
