Kangaroo previously announced the acquisition of a 99% interest in the project from Bayan and is restructuring the ownership of the assets in line with the Indonesian mining law introduced in 2009 which permits direct foreign ownership.

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

Kangaroo managing director Mark O’Keefe said it would further enhance Kangaroo’s ownership of the project and clear the way for commercial development to proceed.

“We are pleased to have completed the transfer of equity for the six companies thus far,” he said.

“We believe this will make a significant positive contribution and be instrumental in achieving our objectives for the Pakar project.

“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 commercialise the company’s cornerstone asset.”

O’Keefe said the Pakar project was a cornerstone asset in Kangaroo’s Indonesian coal production strategy and the direct ownership would secure its exposure to future cash flows to be generated by the project, as well as complementing its existing portfolio of thermal and coking coal projects in Indonesia.

Kangaroo is also in preliminary production at its Mamahak coking coal project and is developing its GPK project.