Kangaroo owns 100% stake at Mamahak coking coal project

International coal producer Kangaroo Resources Limited (KRL) has completed 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 of ifs producing coking coal asset from current 85 percent to 100 percent.

The consideration payable to Score Resources was a nominal US$1.00, with the transaction forming part of a previously agreed cooperative arrangement between the two companies, the company said in statement on Monday.

KRL acquired an 85 percent interest in the Mamahak project from TSX-listed company South Gobi Energy Resources in December 2009 for approximately US$11 million.

After acquiring the Mamahak Project in December 2009, KRL moved quickly to recommence operations in February 2010 with first coal mined in March 2010. Since then, KRL has been actively seeking a substantial long-term off-take partner, while at the same time putting in place the necessary infrastructure and logistics to further develop the Project.

KRL is in a preliminary state of production at Mamahak and the company intends to ramp up this production capacity to 50,000 tonnes per month into 2011 with a recognised third party contractor managing the operation, it said.

KRL is currently in discussion with a number of parties in this regard and is hoping to announce a contractor position in the near future. In the meantime KRL continues to move coal down the Mahakam River with a view to selling into coal contracts. (denny)