Kangaroo Resources‘ subsidiary PT Mamahak Coal Mining has signed a five-year mining contract with PT Putra Perkasa Abadi for the Mamahak project in Indonesia.

The $270m contract , which is scheduled to start on 1 January 2012, will involve the removal of 90m BCM of overburden and will increase the coking coal production at the project to 4.5 million metric tons.

The scope of work will also involve mine planning, project management, supervision, surveying, materials, equipment, equipment maintenance, labour, transportation, medical services, consumables and site infrastructure to carry out the works.