Kangaroo Resources has started mining at the Mamahak Coking Coal Project in East Kalimantan, just six weeks after acquiring an 85% interest in the project.
The operational team has completed the removal of overburden and exposed up to 15,000 tonnes of fresh coal for mining. Mining of this material is now under way.
The coal seams lie near-surface resulting in a lower strip ratio and corresponding lower operational costs. All coal will ultimately be transported to the stockpile facility at the port loading terminal for barging down the Mahakam River.
Kangaroo is targeting initial monthly production of up to 30,000 tonnes of coal from Mamahak, which is its second Indonesian coal operation.
Kangaroo acquired the project as part of a portfolio of Indonesian mining interests purchased from SouthGobi Energy Resources in December 2009.
The project includes a JORC compliant resource of 10.22 million tonnes of coking coal, extensive infrastructure capable of supporting annual production of up to 1.5 million tonnes and a large 30,000 tonne coking coal stockpile ready for immediate shipping.
Acquisition of the project included four coal concessions, including Mamahak Coal Mining. A review of the data and reports on the other three concessions has prompted Kangaroo to begin immediate exploration work across all concessions.
Results returned to date conclude that the other concessions contain coal with similar qualities and characteristics of the current operation.
Initial production will provide the company with an immediate net cash income stream moving forward.
The company’s strategy is to reinvest this cash to further develop Mamahak as well as other projects in its portfolio to achieve its ultimate objective of becoming a plus-10 million tonnes/year international coal producer.
In addition to mining operations, Kangaroo is commencing the transportation of the 30,000 tonne coking coal stockpile to the Balikpapan Coal Terminal. The company is negotiating the sale of this coal to a third party with a view to establishing a strategic long term relationship.

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