Kangaroo starts selling coking coal
Friday, March 25 2011 - 02:31 AM WIB
The coal off-take contract ? for coal sales of up to 300,000 tonnes over 2011 at a market price, FOB Mamahak jetty ? has encouraged both Kangaroo and Bayan to accelerate infrastructure works and the ramp-up of coal operations from the Mamahak Project, the company said.
This has resulted in steady coal production occurring from the mine site, as well as an upgrade to haul roads to allow year-round use of the recently-purchased haul trucks to transport coal to the port stockpile, and upgrades to the coal loading infrastructure at Mamahak. The signing of the off-take contract has also enabled Bayan to mobilise additional barges to ship the coal to its coal handling facilities.
In addition, Kangaroo and Bayan are immediately commencing an exploration programme to target an expansion of the existing JORC-compliant resource estimate at Mamahak.
The current JORC resource, which stands at 10 million tonnes, comes from less than 10% of the overall concession area and the company is confident that this can be elevated considerably over the next year. This exploration programme will ultimately aim to increase the Mamahak reserve and mineable tonnes with a view to lifting production towards 1 million tonnes per annum.
Kangaroo has successfully sought and acquired extensions to its mining permits and licenses at Mamahak and has also successfully completed the mandatory transfer of licenses from KP status to the new IUP status, which will ultimately allow for direct foreign ownership of the concessions.
Kangaroo is currently targeting 500,000 tonnes per annum from Mamahak as an initial production objective which would earn the company approximately US$50 million in annual revenue at current prices, it said
It is expected that this revenue stream and earnings potential will expand considerably as Kangaroo develops its other coal assets and brings them into production during 2011, it added. (kanti)