KRL secures ownership of Bayan?s Pakar coal concessions

Australian-listed coal mining firm Kangaroo Resources Limited (KRL) has informed that the company had completed transfer of equity for five concessions and one asset-holding company at Pakar Thermal coal project in Kalimantan from PT Bayan Resources Tbk.

?We are pleased to have completed the transfer of equity for the six companies thus far. We believe this will make a significant positive contribution and be instrumental in achieving our objectives for the Pakar project,? said KRL?s Managing Director, Mark O?Keefe.

?With direct ownership of the five concessions and the asset holding company secured, it will provide the company with the impetus to fully develop and commercialize the company?s cornerstone asset.?

KRL, which earlier announced the acquisition of a 99 percent interest in the Project from Bayan, is restructuring the ownership of assets in line with Indonesian mining law which permits the direct foreign ownership.

The KRL?s ownership of the project would pave way for commercial development of this cornerstone asset to proceed.

The restructure has been effected by converting each of the five concession holding companies (with IUP licenses) and one asset-holding company to Indonesian PMA companies (a foreign investment company) and transferring 99 percent of the shares from Bayan to KRL.

KRL is currently in preliminary production at its Mamahak Coking Coal Project and is developing its GPK Project. (ruly)