Cokal Limited (ASX: CKA) has announced a transformative strategic partnership with Cratus Group, a leading bulk commodities and investment powerhouse, backed by a US$20 million funding injection.
This collaboration aims to accelerate the development of Cokal’s coal assets in Central Kalimantan, Indonesia, and enhance vital transport infrastructure to unlock the region’s vast metallurgical coal potential.
The partnership includes the creation of a 50-50 infrastructure joint venture (IJV), designed to significantly expand and modernise coal transport infrastructure.
This move will support the production ramp-up at Cokal’s flagship Bumi Barito Mineral (BBM) coal mine, ensuring robust logistical support and positioning Cokal as a competitive force in global coal markets.
Cratus will directly inject US$7 million into Cokal for project development and working capital.
The remaining US$13 million will be allocated to the IJV, enabling the acquisition of shipping vessels and upgrades to existing jetties and loading facilities.
These improvements are expected to pave the way for future development of other key projects in the region, including the Tambang Benua Alam Raya (TBAR) site.
Cokal Chairman Domenic Martino emphasised the significance of this partnership, stating: “By combining their extensive expertise in commodities and logistics with our world-class assets, we can deliver operational efficiency and maximise shareholder value.”
The collaboration with Cratus, which brings two decades of experience and strong ties to global markets, is expected to optimise returns for Cokal’s high-quality metallurgical coal.
Cokal CEO Karan Bangur highlighted the broader impact of the partnership, stating: “This partnership not only strengthens Cokal’s growth trajectory but also enhances the infrastructure required to open up Central Kalimantan’s immense coal resources.
“It’s a step forward for the region’s economic development, connecting its resources to the global stage.”
This partnership represents a significant milestone in Cokal’s journey to becoming a leading supplier of premium metallurgical coal.
It is expected to boost economic growth in Central Kalimantan through enhanced infrastructure and global market integration.
Cratus’s strategic alignment with Cokal underscores its confidence in Indonesia’s coal potential and the broader Southeast Asian market.
The collaboration between Cokal and Cratus is poised to transform Cokal’s ability to maximise the value of its coal portfolio, potentially reshaping the landscape of coal operations in the region.