(MENAFN - ProactiveInvestors - Australia) Kangaroo Resources (ASX: KRL) has delivered 16,281 tonnes of thermal coal production from its Mamahak Coal Mine in Indonesia during October.
This is an important time at Mamahak as the company witnesses the project transition to consistent production rates and ramp-up to targeted production volumes.
Production for October was lower than the record output of 51,123 tonnes achieved for September largely due to the commencement of mining in a new pit area during the month.
However, production rates are expected to improve with the start of blasting, required due to local ground conditions currently inhibiting optimal coal production.
At the end of October, 166,770 tonnes of coal had been stockpiled at Mamahak.
A total of about 1,775 tonnes of coal was transported to Bayan Resources' Balikpapan Coal Terminal towards the end of the month when the river draft increased.
River levels at Mamahak have progressively increased throughout the month with the gradual onset of the wet season.
While not sufficient for full barging operations currently, Kangaroo Resources is optimistic that more substantial volumes of coal will be transported during the coming months.
Kangaroo Resources had 4.4 million in cash at bank at the end of the September quarter, with a total of up to US10.5 million to be received once the complete project equity component of the Pakar Thermal Coal Project transaction has been finalised.
The company's key objectives for the December quarter of 2012 are to:
- Complete the regulatory process and obtain government sign-off for the transfer of the outstanding Pakar Project equity to Kangaroo Resources;
- Continue mining operations and review efficiencies at the Mamahak Coal Mine; and
- Complete the process of acquiring direct foreign ownership of the GPK Thermal Coal Project.