Kangaroo Resources reports lower output at Mamahak coal mine
Friday, December 7 2012 - 02:29 AM WIB
ASX-listed Kangaroo Resources limited (KRL) reported that monthly coal production from its 99 percent-owned Mamahak Coal Mine in East Kalimantan totaled 7,239 metric tons for the month of November, based on final survey.
The company said in a statement obtained Friday that production for November was substantially lower than previous monthly production performances, largely due to the company?s focus on reducing on-site and port coal stockpiles, combined with the impact of an industrial dispute affecting KRL?s mining contractor PT PPA and their personnel. KRL is currently in discussions with PT PPA regarding this dispute arid will assist where possible.
The lower monthly production output resulted in a low stripping ratio of 5.45 during the period from the 39,478 BCM (bank cubic meters) of overburden removal, the company.
Barging operations were significantly increased over November as river levels increased, with a total of 21,136 tons of coal transported to Bayan Resources? Balikpapan Coal Terminal (BCT) during the month. At the end of November, 152,916 tons of coal had. been stockpilod at Mamahak.
The company?s current coal sales contract denotes all coal transported to the BCT is sold at an international coal market pricing index, and the company will receive these sales revenues during the coming month.
Production rates performance during December will continue to be affected by PT PPA?s industrial dispute with its workers, however the company will continue to increase barging operations during this period in order to realize coal revenues from the current coal stockpiles, the statement said.
The company is currently taking advantage of this period of lower mine production to review operational efficiencies, including mine plans and strip ratios, contractor performance. barging strategy and exploration practices.
Editing by Reiner Simanjuntak