Five More Coal Mines To Be Added To Portfolio
Australian mining company Kangaroo Resources is to acquire five Indonesian coal projects, after completing its due diligence. The company announced its plan to buy the projects late last year.
Drilling will soon commence at Kubah Indah, where the company’s exploration target is for 100-400 million tonnes of coking coal.
The company said this drilling program will be conducted in parallel with the ongoing ramp-up of production at its other Indonesian operations.
Prior to announcing these latest acquisitions Kangaroo already had two coal mines in Indonesia.
Managing Director Mark O’Keeffe said “The completion of due diligence was high on our list of priorities and, as expected, the projects were found to be technically and legally sound.”
“Kubah Indah in particular will become a very important project for us and, in combination with the Mamahak Project, will form the backbone of our coking coal production profile in the future."
“We will now move quickly towards the commencement of an initial exploration programme at Kubah Indah, and over the coming months we expect to be able to delineate a significant JORC resource,” added Mr O’Keeffe.
Kangaroo has issued 300 million shares to the projects’ vendors as consideration for the acquisition and these would be issued once its shareholders approve the deal.
Kangaroo recently announced an export sales contract with Chinese energy company, Yudean Farnon.
The contract involves three trial shipments of a total of 150,000 tonnes of coal over a two-month period. The deal will then be extended with pricing linked by a formula to the Chinese Coal Index.
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