Highlights

  • Q1 production expected below plan due to equipment constraints; recovery targeted in Q2
  • Blasting permit nearing approval, with first blast expected mid-April 2026
  • Coal sales progressing, though RKAB regulatory process may impact near-term shipment timing

Cokal Limited (ASX:CKA) has provided an operational update on its Indonesian metallurgical coal activities, highlighting ongoing mining operations, infrastructure improvements, and regulatory developments. While equipment availability challenges during February have impacted productivity, corrective actions are being implemented to improve fleet performance, with production expected to ramp up in Q2 to recover the Q1 shortfall.

The Company is also awaiting the final approval of its blasting permit, anticipated by late March 2026, which will enable enhanced mining efficiency once implemented. In the meantime, hauling operations continue, supported by maintenance works on both captive and public roads. Coal sales remain active, including recent domestic shipments, though broader regulatory processes related to RKAB approvals may influence short-term shipment scheduling. Management remains confident in domestic demand and is engaging constructively with authorities to improve operational visibility and long-term stability.

Operations and Production Update

Mining activities continue under the appointed contractor, although equipment availability constraints during February affected output levels. As a result, first-quarter production is expected to fall below initial targets. The Company is implementing corrective measures aimed at improving fleet reliability and overall operational efficiency. Focus remains on optimisation initiatives, contractor performance, and productivity enhancements to support stronger output in the coming quarters. With ramp-up plans underway, management anticipates recovering production shortfalls in Q2, subject to improved equipment performance and operational conditions.

Regulatory Developments and Sales Outlook

The Company is awaiting the issuance of its blasting permit, currently under final review, with approval expected by late March 2026. Upon receipt, the first blast is planned for mid-April, which should enhance productivity and stripping efficiency. In parallel, coal sales continue, including a recent domestic shipment and discussions for additional deliveries. However, regulatory developments related to the RKAB approval process across Indonesia’s IUP sector may affect near-term sales timing. While the impact remains uncertain, management remains confident in continued domestic demand and ongoing engagement with regulators and customers.

FAQs

  1. Why is Q1 production expected to be lower?

Equipment availability issues affected operations, but corrective measures are being implemented to improve performance.

  1. When will blasting begin?

The blasting permit is expected by late March 2026, with the first blast targeted for mid-April 2026.

  1. Are coal sales continuing?

Yes, shipments are ongoing, though regulatory approvals under the RKAB process may influence short-term scheduling.