INFRASTRUCTURE PARTNER SELECTED
After negotiations with a number of contractors,
In the meantime the Company has signed an MOU setting out the basis for the formal contract to include: u
The initial haul road will be from the PCI mine to the new Krajan barge-loading jetty, about 5kms in total. This will allow immediate access for the PCI coal to the local market in Krakatau Steel which is seeking to commission it's new steel making blast furnace using a combination of coking coal and PCI coal. This is the first time PCI will be used in steel making in
The new longer haul road, 55kms long, will join up with an existing haul road to provide an alternative logisitic solution to transporting BBM metallurtgical coal to the marketplace during times of drought when the river can be too low for barging from Krajan. The 55kms will follow an existing narrow road used by logging companies, and will be upgraded to a 10m wide, all weather haul road to service 30 tonne coal trucks to a port at Lahung Tuhup, some 160kms downstream on the
The MOU with
The construction of each jetty will incorporate: a design to accommodate shallow draft barges; allowance for water depths in excess of 10 meters during the wet season; a 1000t/h barge loading conveyor; coal handling and storage facilities.
Overburden Stripping and Coal Handling
The Company proposes that it will barge coal from both Krajan jetty, as well as from Lahung Tuhup jetty. These two logistical solutions will help guarantee reliable supply of metalurgical coal to customers throughout the year. The total investment cost for road construction, jetty construction and infrastrcture related to overburden removal and coal mining is to be borne 50% China Rail and 50%
BARGING TERM SHEET SIGNED
The Company has signed a term sheet with
HSM will have the initial two self-propelled barges ready by the time coal production commences on site. The contract period shall be for a period of 5 years with an option to extend for an additional 5 years, based on mutual agreement between both parties.
FIVE YEAR
Contact:
Email: dmartino@cokal.com.au
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