Contractually bound
Staff reporter, 1 December 2011
ASX-LISTED Kangaroo Resources has locked in a $US270 million five-year mining contract with Indonesia’s PT Putra Perkasa Abadi to mine up to 4.5 million tonnes of coking coal from Kangaroo’s 100%-owned Mamahak project in Indonesia, with equipment mobilisation due to start this month.
The deal, negotiated by major Kangaroo shareholder PT Bayan Resources Tbk, will require PT Putra to step up its capacity, based on the description on its website. The company, which has a “vision … to be Indonesia’s green coal mining contractor”, has its total workforce at about 120 people and an equipment fleet capable of handling production of 3Mtpa of coal. It has also supplied and exported coal in its own right.
The Mamahak contract, scheduled to start in January next year, requires removal of 90 million bank cubic metres of overburden followed by mining of up to 1Mtpa of coking coal.
The new mining contract would cement the transition of Mamahak from small-scale mining operations seen to date to full-scale production, Kangaroo said. Most of the contractor’s equipment was due on site by the September quarter next year.
“The contract incorporates a scope of works for the mining contractor including project management, mine planning, surveying, supervision, site security, materials, equipment, equipment maintenance, labour, transportation, medical services, consumables and site infrastructure to carry out the works,” Kangaroo said in a statement.
As part of the award of the contract, an upgrade of the existing haul road is planned with work scheduled to commence in the June quarter next year and be completed by end of 2012.
“The company has also identified a new haul road alignment to a permanent barge loading facility on the Mahakam River that will significantly improve year-round barging access at Mamahak,” Kangaroo said. “A LIDAR topographic survey will be undertaken in Q4 2011 to complete the survey works required to commence the tender process for constructing the new road.”
A tender is also in train for construction of a new camp and support facilities, with award and commencement of construction expected to occur during 2012.
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