Emerging Indonesian coal producer Kangaroo Resources, which recently increased total resources across its portfolio of projects to 3.15 billion tonnes of JORC-compliant resources, received shareholder approval for a deal to acquire Pakar that issued $2.31 billion in new shares to Indonesian producer Bayan.
Bayan is now Kangaroo’s major shareholder, with a 56% shareholding.
The transaction will enable Kangaroo Resources to move towards its goal of becoming a significant Indonesian coal producer in the future, chairman Peter Richards said.
Bayan would be both a shareholder and an operating partner and was a proven marketer of coal, he said.
Some mining at Pakar is expected this year, with Kangaroo Resources anticipating to produce 5 to 10 million tonnes of coal per annum.
A research report undertaken by DJ Charmichael identified key operational strategies for 2011, which included:
Commenceing immediate ramp up of Mamahak, Kangaroo’s coking coal project in East Kalimantan;
Initiating some Pakar coal production, most likely in the Pakar south region; getting Pakar north into production by late 2011, and targeting Kangaroo's GPK thermal coal project into initial production in late 2011 or early 2012.
Meanwhile, drilling results from Cokal’s ramp up at the prospective Bumi Barito project will be released by the end of the month.
Two additional rigs have commenced operation at the BBM project, and Cokal executive chairman Peter Lynch said the company was aimed to further increase the number of drill rigs operating.
Cokal commenced geological mapping across the project area in January this year.
An independent assessment by SRK Consulting said the tenement was likely to hold low volume PCI and coking coal.
Previously named Altera Resources and led by former Waratah Coal chief executive Peter Lynch and coal veteran Jim Middleton, the company changed its name to Cokal to reflect its focus on coking coal opportunities in Indonesia.
“We are focused on producing coking coal, with Kalimantan hosting our initial assets, and believe the new name Cokal best reflects the future direction of the company,” Cokal executive chairman Lynch said.
Cokal completed a $20 million capital raising in the December quarter.
