Cokal’s Operations Slow as Market Softens and Logistics Costs Rise

Cokal ( (AU:CKA) ) has shared an announcement.

Cokal reported that mining, hauling, and infrastructure works continued at a reduced pace in the March quarter, as delays in regulatory approvals, high fuel prices, and limited fuel availability constrained operations. Hauling and barging were further hampered by poor haul road conditions and persistently low water levels on the Upper Barito River, cutting production and shipment volumes.

Drill-and-blast preparations advanced, with infrastructure completed and contractor mobilisation progressing, and all required approvals secured after quarter end, enabling first blasting in May to improve efficiency in high strip ratio areas. Site infrastructure was kept to essential works, with key facilities finished for the blasting contractor and upgrades ongoing at the Batu Tuhup jetty.

Coal sales were muted during the period, reflecting the combined impact of approval delays, elevated fuel costs, and softer Indonesian demand amid increased availability of imported coal. PT Petrosea continued upgrading the haul road and key access and camp infrastructure, with plans to deploy more equipment in the June quarter to speed work across multiple sections.

In the wider market, seaborne coking coal prices softened by roughly 5–10% during the quarter as increased Australian exports and weaker demand from some Asian steel mills intensified competition. Rising fuel costs also pushed up freight and barging expenses, making small cargoes less attractive to local end users and adding further pressure on Indonesian producers such as Cokal.

More about Cokal

Cokal Limited is an ASX-listed coal producer focused on metallurgical (coking) coal, supplying steelmakers in Asia and Indonesia’s domestic market. The company operates mining, hauling, and infrastructure assets in Indonesia, with its logistics chain relying on haul roads, river barging, and jetty facilities, making it sensitive to fuel prices, river conditions, and regulatory approvals.

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Technical Sentiment Signal: Hold

Current Market Cap: A$66.89M

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