Kangaroo on track for maiden Indonesian coal

Australian company Kangaroo Resources Limited said it is on track to mine and produce first coal from its 84.82%-owned GPK Coal Project in East Kalimantan by the end of December 2009 after making excellent recent progress at the Project.

The company plans to commence production at GPK at an initial rate of 25,000 tonnes per month, before ramping to 1-2 million tonnes in 2010 and ultimately more than 10 million tonnes per annum within three years as the company?s other Indonesian projects are brought into production, it said.

Development work is continuing at site with equipment currently working to pre-strip the initial designated mine area. The company has also been clearing a port site to facilitate barge loading of coal from the stockpile for transport along the Mahakam River for sale to state electricity firm PLN, it said.

The company said it would acquire a 5,000 tonne barge which will be used to transport the coal down the rive, which will save up to US$4/tonne in operational costs, as well as provide it with greater flexibility and other logistical benefits.

In addition, KRL?s Indonesian partners have finalised off-take sales agreements for the initial three months of coal produced at GPK with local power suppliers in Kalimantan. These agreements are now in place and will come into effect immediately upon first coal being delivered.(denny)