Kangaroo expects PAKAR coal project to begin production 2016
Saturday, November 1 2014 - 05:19 AM WIB
ASX-listed Kangaroo Resources Limited said Friday it is in the process of renewing and updating the necessary permits and licenses to allow its PAKAR North coal project in Kutai Kartanegara Regency, East Kalimantan Province, to start production in 2016.
?Work is ongoing towards updating and renewing mining exploration licenses and permits and obtaining other necessary permits and approvals to enable mining operations to commence at PAKAR North in 2016,? the company said in a third quarter report.
?Processing of applications by the various authorities proved to be slower than expected during the third quarter mainly due to the Presidential Elections (in Indonesia) and associated changes in government ministries and departments. A new Cabinet was appointed in October,? it added.
The company said new Infrastructure now connects the TABANG projects owned by Bayan mining group, the company?s PAKAR projects to a new port at Senyiur on the Kedang Kepala river. ?This Capex project has been fully funded by Baya,? it said.
?Construction of the new infrastructure comprising a new 69Km haul road and river port facility has been ongoing throughout 2014. Trial cargoes have already been carried out and the initial facilities are scheduled to be fully operational and dispatching Tabang coal in early 2015,? it added.
Kangaroo said commercial arrangements are being negotiated with Bayan to ensure proportion of the overall infrastructure capacity will be allocated for PAKAR coal, scheduled to come on stream during 2016.
The Pakar concessions consist of 9 contiguous concession areas that cover a total area of 35,572 Ha. The concessions are PT Tiwa Abadi (TA), PT Tanur Jaya (TJ), PT Dermaga Energi (DE), PT Orkida Makmur (OM), PT Sumber Api (SA), PT Cahaya Alam (CA), PT Bara Sejati (BS), PT Apira Utama (AU) and PT Silau Kencana (SK).
Initial exploration work has enabled a JORC compliant Report to be issued by PT Runge Indonesia in March 2011. The report estimated 16Mt of Proven Reserves, 428Mt of Probable Reserves along with 111Mt of Measured Resources, 1092Mt of Indicated Resources and 1816Mt of Inferred Resources. (JORC 2004) The Sub-Bituminous seams exhibit low stripping ratios, shallow dip (<5 degrees) and thick coal seams ranging in thickness from 10-22 meters, according to the company.
Editing by Reiner Simanjuntak