Kangaroo gets greenlight to develop E. Kalimantan coal project
Tuesday, October 6 2009 - 06:17 AM WIB
Kangaroo has a right to move to an effective 84.82% interest in the GPK project.
The Exploitation license, issued under Indonesia?s new Mining Law, provides the final regulatory approval required to commence the construction of mine and associated infrastructure facilities for the GPK Project, with initial production targeted for December 2009, the company said.
The GPK project has a current JORC resource of 248 million tonnes (MT) of coal with an average calorific value of 5,245kcal/kg (adb), comprising 141 Mt as an Indicated Resource and 107 Mt as an inferred Resource, claimed Kangaroo.
GPK said last week that it would complete site works, obtain equipment and confirm contractors for planned initial production of 25,000 tonnes per month by December 2009.
It would also start the infrastructure works process to allow production ramp-up to 1 MTPA by mid 2010, 2 MTPA in 2011, and ultimately ~4 MTPA in 2012.
The company said it Indonesian partner will finalize coal off-take agreements with PT Indonesia Power, a subsidiary of state electricity firm PLN.
The project is located 15kms from the Mahakam River, a large inland river in East Kalimantan that facilitates the development of infrastructure, including road and port facilities, for the transportation of coal. (denny)