Cokal (ASX:CKA) released an operational update regarding its metallurgical coal project in Indonesia, highlighting a strategic shift toward production recovery and infrastructure optimisation.
While equipment availability issues hampered mining activities throughout February, the company is currently implementing corrective measures to enhance fleet performance.
Although these challenges mean Q1 production is expected to fall below initial targets, a significant ramp-up is already underway to recover the shortfall during the second quarter.
A major catalyst for increased productivity is the pending blasting permit from regional police authorities.
Currently in the final stages of review, the permit is anticipated by late March.
The timeline would allow for the inaugural blast to be scheduled by mid-April, an event expected to drastically improve stripping efficiency.
Preparation is already in full swing, with the SMS senior management and Australian operations teams having arrived on-site to oversee the transition.
Logistical efforts are also a primary focus, with hauling operations continuing at a moderate pace.
To combat difficult conditions on certain public road sectors, Cokal is undertaking routine maintenance across both captive and public infrastructure to streamline coal transport.
On the commercial front, the company achieved a milestone with the successful completion of a domestic coal shipment to a local smelter on March 16.
At the time of reporting, Cokal's share price was $0.066.