Kangaroo gets fresh fund to ramp-up Indonesian coal projects

International coal producer Kangaroo Resources Limited (KRL) has raised about A$2.83 million by selling a 19.9 percent stake to an undisclosed strategic investor.

The company said in statement on Friday that the fresh funds will be used to pay out unconverted note holders, leaving the company in a debt free position; to ramp up coal production at its Indonesian coal assets including the Mamahak coking coal project; and to provide more working capital.

?KRL is targeting ramp-up of production at its Mamahak semi-soft coking coal project in the near term as well as undertaking an aggressive exploration program targeting additional coal resources to extend the current life-of-mine planning,? it said.

KRL completed early this month the acquisition of the remaining 15 percent of the Mamahak coking coal project in East Kalimantan from Indonesian firm called Score Resources, increasing its ownership to 100 percent from 85 percent.

KRL is in a preliminary stage of production at Mamahak and the company intends to ramp up its production capacity to 50,000 tons per month into 2011, it said in a statement on Dec. 6.

KRL has eight coal mining projects in East Kalimantan including Kubah Indah coking coal project (100 percent interest), Tanur Jaya Thermal coal project (45 percent interest, subject to the terms of the agreement), Jawana coking coal project (100 percent interest) and Borami coking coal project (100 percent interest).

One of the projects, called Graha Panca Karsa (GPK) project, located in the regency of West Kutai, has started production. 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. (denny)