Cokal (ASX:CKA) said first-quarter production is expected to fall below its initial plan due to equipment availability issues through February, with operations now ramping up to recover the shortfall in the second quarter, according to a Wednesday Australian bourse filing.
The company said a blasting permit from the regional police authority is at the final stage of review and is expected to be issued by late March, with the first blast scheduled for mid-April to enhance mining productivity and stripping efficiency.
Hauling operations continue but at a moderate pace due to prevailing conditions on certain sections of public roads, while a coal shipment to a domestic smelter was completed on March 16, with discussions progressing for an additional shipment targeted for the end of March, the filing added.
The company said recent regulatory developments regarding the RKAB approval process have affected the broader Indonesian IUP sector, with approvals currently expected to be determined by early April, potentially affecting coal sales and shipment scheduling in the near term.
Cokal said it is unable to quantify the potential impact of the RKAB process on sales volumes or timing at this stage, but believes it is well-positioned to benefit from improved regulatory visibility once the process concludes, the filing added.
The company's shares rose 8% in recent Wednesday trade.