Kangaroo updates Mamahak coking coal project
Tuesday, October 26 2010 - 12:35 AM WIB
As previously reported, KRL has been working towards ramping-up production at Mamahak to a steady-state target level of 50,000 tonnes per month during the final Quarter of 2010 but has been hampered by low water levels in the upper Mahakam River, resulting in delays to the movement of significant tonnages of coal downstream.
KRL can now confirm that barging operations have re-commenced following the rise of river levels in the upper reaches of the Mahakam River, enabling transportation of coal to resume.
The Company has stockpiled 49,000 metric tonnes of coal at its port facility and is now commencing transport of this coal to an ISP (intermediary stockpile point) facility near Tenggarong.
The coal product will be stockpiled there awaiting full shipment to be supplied under the terms of its initial coal off-take agreement with a Japanese customer.
An additional 8,000 ? 10,000 metric tonnes of coal has been prepared for mining to fulfil the balance of the coal sales agreement. This first export sale is expected to be finalised prior to the end of the current quarter.
These improvements have included the installation of a new crusher, which is operating at a capacity of 200t/hour, and upgrading the haul road and accommodation facilities.
In addition, land compensation obligations, mine planning, logistics issues, mine equipment works are all currently continuing in preparation for the ramp-up to steady-state production.
The Company is continuing to assess outsourcing options for the mining operations at Mamahak to achieve the best possible outcomes from the Project.
KRL is continuing to target a production ramp-up at the Mamahak Coking Coal Project to a steady-state level of 50,000 tonnes per month (annualised target of 600,000tpa).
KRL Managing Director, Mark O?Keeffe, said: "We are pleased to have re-commenced the barging of coal at Mamahak after the unprecedented duration of low river levels in the upper Mahakam River. The initial sale of coal from this project will accelerate our production growth strategy to build the Company into a significant Indonesian coking coal producer.? (ends)