Cokal’s BBM Targets 420,000 Tonnes in 2026 with New Contractor and Fleet
Cokal Limited’s PT Bumi Barito Mineral has resumed limited mining operations and appointed PT Harapan Mitra Lestari as its mining contractor, while upgrading logistics infrastructure to support future production growth.
- Limited in-house mining resumed at Pit 3 producing Low Volatile Hard Coking Coal
- PT Harapan Mitra Lestari appointed as mining contractor under a 5-year non-exclusive contract
- Phased mobilisation of mining fleets planned through 2026 to ramp up production
- Agreement with PT Petrosea to upgrade haul-road and logistics to all-weather, higher-capacity standard
- BBM retains flexibility to engage additional contractors aligned with market conditions
Operational Resumption Amid Market Caution
Cokal Limited’s 60%-owned PT Bumi Barito Mineral (BBM) has cautiously restarted limited mining operations at its Pit 3 site in Central Kalimantan, Indonesia. The focus is on producing small quantities of Low Volatile Hard Coking Coal (LVHCC) to maintain operational continuity during a period of subdued demand in the metallurgical coal market. This measured approach reflects management’s intent to preserve operational readiness without overextending amid uncertain pricing conditions.
Strategic Contractor Appointment
To support its production ramp-up strategy, BBM has appointed PT Harapan Mitra Lestari (HML) as a mining contractor, commencing mid-December 2025 under a five-year non-exclusive contract. HML, backed by its parent company PT Riung Mitra Lestari (RML); a well-established Indonesian mining operator; will handle overburden removal and pit-to-run-of-mine coal production. The contract includes competitive rates and performance guarantees, with RML providing operational oversight and stepping in if targets are not met.
Phased Fleet Mobilisation and Production Targets
HML will mobilise mining fleets in phases, starting with a rental overburden fleet during BBM’s ongoing in-house mining phase. By December 2025, four PC500 excavator fleets will be fully mobilised, with an additional two 100-tonne overburden fleets planned for early 2026. This fleet composition aims to support a production target of approximately 420,000 tonnes in 2026, marking a significant scale-up from the current limited output.
Infrastructure Upgrades to Support Growth
Recognising the importance of logistics in sustaining higher production levels, BBM has secured an agreement with PT Petrosea to upgrade haul-road and logistics facilities to an all-weather, higher-capacity standard. This enhancement is critical to ensure reliable coal transportation to the Batu Tuhup Jetty and to support future production growth without bottlenecks.
Maintaining Flexibility Amid Market Uncertainty
BBM is actively engaging with other established mining contractors to retain flexibility in scaling production as market conditions improve. Management has emphasised prudence, aligning any significant ramp-up with infrastructure readiness and stronger market fundamentals to avoid excessive operating costs and cash flow pressures. This strategic restraint highlights a balanced approach to growth in a volatile commodity environment.
Bottom Line?
BBM’s phased ramp-up and contractor strategy position it well for growth, but market conditions will ultimately dictate the pace.
Questions in the middle?
- How quickly will HML mobilise its full fleet and meet production targets?
- What impact will the upgraded logistics infrastructure have on operational efficiency?
- Could BBM engage additional contractors if coal market conditions improve sooner than expected?
