Cokal managing director and chief executive officer Jim Middleton and director Domenic Martino attended the MoU signing ceremony with Murung Raya Regency government head Willy Yoseph in the capital of Puruk Cahu.

The company’s first MoU with the regency will enable the development of two river ports for coal stockpiling and barge loading on the Barito river to service the needs of its Bumi Barito mineral coal project as well as other future Cokal projects.

The second MoU is for the potential development of two small-scale coal-fired power stations in the Murung Raya Regency.

As well as having the potential to service Cokal’s mines, Cokal chairman Peter Lynch said the power stations would provide wide-ranging benefits to the local community.

Cokal has a 60% stake in its Bumi Barito mineral coal project in Central Kalimantan, which lies adjacent to BHP Billiton’s Juloi tenement.

Cokal previously confirmed the presence of high-quality premium metallurgical coal at the BBM tenement.

Middleton said the MoUs were a huge leap forward for the company.

“This cooperation and assistance will help us to quickly move into the production phase,” he said.

“Cokal has committed to a high level of community engagement through an effective community social responsibility program focused on education and training, employment and local infrastructure development.”

Middleton said concept studies for the port infrastructure and power stations would commence immediately.

If the studies yield a positive outcome, Cokal will consider options whereby the vital infrastructure may be project financed.