ASX-listed Cokal has secured a $15-million strategic debt funding facility to support the expansion of metallurgical coal production at its Bumi Barito Mineral (BBM) mine in Central Kalimantan, Indonesia.

The funding comes from long-term shareholder Eddie Chin Wai Fong, through International Commodity Trade (ICT), and will be used to invest in capital expenditure aimed at increasing mining operations and transport infrastructure capacity at the BBM project. Cokal holds a 60% interest in the mine.

The company said the new capital injection would enable the mine to ramp up production and unlock operational efficiencies, lowering the cost of saleable metallurgical coal on a per-tonne basis.

ICT has a long-standing financial relationship with Cokal, having previously provided $20-million in financing for the initial development of the BBM mine and related infrastructure. Existing financing and marketing agreements between the parties remain in place.

Meanwhile, Cokal announced that it has terminated all agreements with Cratus. The agreements included a strategic partnership across coal marketing, transport infrastructure and financing. "As a result of the terms of these agreements not being met to Cokal's satisfaction and Cratus's continued failure to perform, Cokal has terminated these agreements with the Cratus companies," it said in a statement.

Cokal, with the finalisation of the strategic debt funding facility, will have the funding to continue its infrastructure development and other requirements. Strategically, Cokal is positioning the BBM project to complete its initial infrastructure development, including coal hauling road, jetty and loading requirements at Krajan and Batu Tuhup, to be in a position to ramp up volumes of coal production and sale through the logistics chain as metallurgical coal prices recover from their lows early this year.

The company also confirmed the resumption of domestic coal shipments, noting that it continued to navigate market challenges while focusing on delivering value from its metallurgical coal assets.