Kangaroo to expand Indonesian coal portfolio

Australian firm Kangaroo Resources Limited announced on Monday it had signed Heads of Agreement (HoA) to acquire four coal properties in East Kalimantan.

The company said the acquisition plan, which is still subject to due diligence, underpinned its strategy to become Indonesia?s mid-tier coal producer with production seen to reach 10 million tons per annum (MTPA) in 2-3 years.

The company said it would raise A$25 million via capital raising to support the plan to bring the projects into production as soon as possible.

Earlier, the company and its Indonesian partner has been given permit to exploit their Graha Panca Karsa mine, also in East Kalimantan, which it claims has a current JORC resource of 248 MT of coal.

Project highlight

Kubar lndah Coking Coal Project
A highly prospective concession with an exploration target of 100 - 140 million tonnes of coking coal with coal quality ranging between 7,500 ? 8,500 Kcal/kg (adb).

Historical exploration works include over 5,000 metres of drilling.

Production of up to lMtpa targeted to commence in 2012, with planned ramp up to as much as 2Mtpa in 2013 (subject to securing appropriate funding and logistics).

Tanur Jaya Thermal Coal Project
Estimated mineable target of 75 -100 million tonnes, with the coal quality ranging between 5,000 ?5,400 Kcal/kg (adb).

Drilling programme currently in progress with an exploration target of an additional 60 ? 80 million tonnes of coal, with estimated coal quality of 5,200 ? 5,600 Kcal/kg (adb).

Part of the Pakar Thermal Coal Project - all associated infrastructure and development close to completion.

Initial production targeted to commence by March 2010.

Jawana and Borami Coking Coal Projects
Greenfield exploration concessions targeting coking coal and very high qualify thermal coal, adjacent to the Mamahak Project operated by South Gobi Energy Resources.(denny)