Cokal Sets Mid-June Restart At BBM after Receiving RKAB Approval

Cokal (ASX: CKA) says it has received RKAB approval for the current operating period at its Bumi Barito Mineral (BBM) project in Indonesia, removing the main regulatory constraint that had slowed mining and coal sales in recent months.

The approval supports a mid-June restart of mining, resumed hauling, and preparations for an approximately 10,000 metric tonne low vol hard coking coal export shipment by the end of June.

The approval matters because earlier company filings had identified RKAB timing as a key operational bottleneck.

In its March 2026 quarter report, Cokal said BBM operations had continued only at a reduced pace as delays in that approval process, alongside fuel constraints and low river levels, affected mining, hauling and sales.

Cokal said site dewatering readiness, hauling, and restart preparations are now underway, with mining expected to recommence in the second week of June following site preparation work.

An approximately 10,000MT shipment of Low Vol Hard Coking Coal (LVHCC) is now being finalised for end-June, while domestic sales discussions for July to August are underway.

BBM Project Context

Cokal’s main operating coking coal asset in Indonesia, BBM is centred on the production and sale of coking coal, with current mining activity focused around Pit 3 and logistics linked to stockpiles, haul roads, jetty infrastructure and river barging.

BBM has a permit area of 14,980 hectares, a revised June 2025 resource of 260.1Mt, and reserves of 23.01Mt, with environmental approval permitting a mining rate of up to 6Mt per annum.

Cokal holds a 60% interest in BBM, and had been targeting production of about 420,000 tonnes in 2026, but that timetable was disrupted by RKAB delays, elevated fuel prices, fuel availability constraints, and low water levels affecting transport on the Upper Barito River system.

In January 2026, Cokal had been reporting contractor-led mining progress at Pit 3, resumed coal sales including a 7,500 tonne shipment to PT Krakatau Posco, part of the POSCO Group, and ongoing work to ramp logistics.

By April 2026, however, the company said regulatory delays and transport issues had materially slowed the operation.

The latest update therefore reads less like a new expansion announcement and more like a reset after a period of interruption.

Operations and Logistics

While hauling operations have resumed and are supporting coal stockpiling at Krajan and Batu Tuhup Jetty, barge operations remain dependent on river conditions improving, which keeps logistics as a live operational variable even after the RKAB approval.

The first controlled blast at Pit 3 on 4 June was designed to improve fragmentation and mining productivity, with drill-and-blast capability an important lever for improving efficiency in high strip ratio areas.

Export logistics are also moving forward, with Cokal finalising an approximately 10,000MT LVHCC export cargo for end-June, giving the market a concrete short-term operating marker after a quarter in which sales were limited.

Supporting infrastructure works are continuing at Batu Tuhup Jetty, while a haul road upgrade project is advancing to support about 3Mtpa and includes a toll-fee mechanism intended to recover prior haul road investment.

The filing also touched on a longer-dated development track: underground mining.

Cokal said AMDAL documentation is underway and the PPKH application is being processed, with completion of the environmental permitting process targeted for Q4 2026.

That part of the story remains subject to regulatory review and approvals rather than near-term operating activity.

What to Watch Next

The immediate test is whether mining restarts in the second week of June as flagged, and whether the planned end-June export shipment proceeds on the timing outlined by the company.

Investors will also be watching whether resumed hauling converts into reliable barge movements.

Earlier filings said persistently low river levels had limited navigability, loading and shipment capacity, and the latest filing still makes clear that barging depends on improved river conditions.

Funding is another clear watchpoint from the company’s recent disclosures.

Cokal previously reported US$168,000 in cash, US$1.756 million in undrawn facilities, and an estimated funding runway of 0.7 quarter, alongside net operating cash outflow of US$2.238 million for the quarter.

That means the pace of shipment completion and conversion into cash receipts remains relevant to the near-term operating picture.

Approval Clears the Near-term Gate

Cokal’s latest update is primarily a restart story: RKAB approval removes the main regulatory blocker that had been constraining BBM operations and gives the company a clearer path toward mid-June mining activity and an end-June export cargo.

The next test is less about permitting and more about execution, including dewatering, hauling, river conditions, shipment timing and whether sales proceeds arrive fast enough to ease the funding pressure flagged in the most recent quarterly cash flow report.

There is also a broader market backdrop to monitor.

Cokal said global coking coal pricing is under pressure amid subdued demand.

Although that does not change the operational significance of the RKAB approval, it does mean realised sales outcomes remain linked not only to production and shipping progress, but also to prevailing market conditions.

Longer term, underground permitting is an additional milestone stream to follow.

The company is targeting completion of that environmental permitting process by Q4 2026, but the timing remains subject to review under the relevant Indonesian approval pathways.