Kangaroo strikes a deal with mining consultancy

INDONESIAN coal producer Kangaroo Resources has awarded a three-year mining and operational support services contract to Australian & South East Asian Mining Consultants.
Kangaroo strikes a deal with mining consultancy Kangaroo strikes a deal with mining consultancy Kangaroo strikes a deal with mining consultancy Kangaroo strikes a deal with mining consultancy Kangaroo strikes a deal with mining consultancy

Kangaroo Resources' fist shipment is barged to an East Kalimantan power station.

Blair Price

The value of the contract was not revealed by the company, formerly known as Kangaroo Metals, but it said the agreement was negotiated using cash and Kangaroo shares as payment.

ASEAMCO’s services range from drill program design through to feasibility studies and mine valuations.

“We are pleased to have secured the ongoing services of ASEAMCO, not only as they are very experienced in coal mining in Indonesia but also as they have a long history working on several of Kangaroo’s projects and also with our Indonesian partners,” Kangaroo managing director Mark O’Keeffe said.

“We believe Kangaroo and its Indonesian partners have a portfolio of significant coal assets in East Kalimantan, and ASEAMCO is confident it has the expertise to add value to these assets,” ASEAMCO managing director Robert de Jongh said.

Kangaroo raised $US15 million cash from convertible note issues earlier this month to further develop its low-cost Indonesian coal project portfolio.

The junior plans to ramp up its Mamahak coal mine in East Kalimantan to 50,000 tonnes per month by the end of 2010.

The company is in the process of acquiring 49% of the Tanur Jaya thermal coal project.

Kangaroo recently announced maiden resources of 297 million tonnes at the project, with production scheduled to start this financial year.

Shares in the company closed up half a cent, or 4%, to 13c yesterday.

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