Kangaroo, ASEAMCO in E. Kalimantan coal services deal

Australia-exchange listed coal producer Kangaroo Resources Limited has secured a new three-year contractual services agreement with Australian mining consultant, ASEAMCO Pty Ltd to deliver key mining and operational support services across its portfolio of Indonesian coal projects.

?The new agreement has been negotiated as payment partly in cash and partly in Kangaroo shares at the election of ASEAMCO,? the company said in a statement.

Kangaroo has 8 coal mining projects in East Kalimantan including Graha Panca Karsa (GPK) in West Kutai regency, East Kalimantan. GPK started coal production in January 2010 and it targeted to produce up to 100,000 tons of thermal coal per month by early 2011, and ultimately up to 3-4 million tons per annum (Mtpa) by 2012.

Mamahak coking coal project in East Kalimantan also has started coal production and is expected to ramp-up to steady state level of 50,000 tons per month by the end of 2010 (annualised target of 600,000tpa).

Kubah Indah Coking Coal Project (100% interest), Tanur Jaya Thermal Coal Project (45% interest, subject to the terms of the agreement), Jawana Coking Coal Project (100% interest) and Borami Coking Coal Project (100% interest). (kanti)