Kangaroo seeks for shared use of Tabang infrastructure facilities
Thursday, July 31 2014 - 12:19 AM WIB
ASX-listed Kangaroo Resources Limited (KRL) reported that it has reached an ?in-principle? agreement with IDX-listed coal miner Bayan Resources Tbk for the shared use of the new Tabang Infrastructure facilities in East Kalimantan being developed by the latter firm due to be commissioned in the fourth quarter of 2014.
KRL said in a statement Wednesday that Bayan?s Tabang mining concessions are already in commercial operation and the company expects to bring its own Pakar concessions into production and commence feeding coal through the new Tabang Infrastructure facility within the next 2 years.
The company said it is now in more detailed discussion with Bayan regarding establishment of commercial agreements to formalize this co-development arrangement which will cover the life of mine of its Pakar concession areas.
?Work is already underway on a 69Km coal haul road to link the Tabang and Pakar concessions to the existing port location at Senyiur on the Kedang Kepala river,? KRL said.
This new haul road, which includes 5 bridges, is being constructed by IDX-listed PT Petrosea Tbk.
A new coal crushing and stockpiling facility will be constructed at Km6 which will link to an upgraded Barge loading Port facility at Senyiur (Km0)
The new Infrastructure facility will have a throughput capacity of 30Mtp a initially built in 2 stages. (18Mtpa and 30Mtpa) Current river capacity for barging of coal is estimated at 42Mtpa, and further expansion beyond 30Mtp a is envisaged as export and domestic markets for Tabang and Pakar coal products grow.
A proportion of the overall infrastructure capacity will be allocated for Pakar coal, KRL said. Mining plans are currently being developed for 2 of the Pakar North concessions to commence commercial production by 2016.
KRL said it will have access to the facilities on a cost-per-ton basis and will also be able to utilize the same haulage, mining and barging contractors to help optimize overall production costs.
Elsewhere, KRL also reported that a US$12 million (A$12.75 million) reduction in its debt position following the settlement of the outstanding cash component of the Pakar transaction. This reduces KRL?s debt position to approximately US$26 million (A$27.615 million).
The adjustment will be applied from 1st January 2014 providing a welcome reduction in interest charges of approximately US$0.85 million (A$0.90 million) per annum. ?The company will continue to review options to further reduce its debt position and interest costs going forward,? KRL said in the statement.
Editing by Reiner Simanjuntak