Altura Mining?s coal production falls in Q3 2015
Saturday, October 31 2015 - 04:05 AM WIB
ASX-listed Altura Mining Limited said on Friday that production at Delta Coal mine in East Kalimantan during the three months to September 2015 was well below the previous quarter and significantly below the annual target of 1.5 metric tons.
The company previously reported that it was in negotiation with its mining contractors in order to reduce mining costs and improve on site efficiencies. Agreement was reached with one of the contractors at the end of July 2015 which paved the way for a recommencement of operations in the newly developed Pit 37 Extension.
The resultant negotiations were vital in providing a long term sustainable outcome for both Delta Coal and its long term partner contractors. The resultant 13% reduction in waste stripping costs was an acceptable result for all parties, and Delta Coal has fairly agreed to a mutual fairness clause whereby it will increase rates based on Indonesian Coal Index (ICI) prices.
The mine continues to focus on cost reductions and efficiency gains in order to offset historically low coal prices and provide a positive platform to maximise the extraction of the mine?s considerable coal resources.
Coal demand was good during the quarter with all coal produced being sold and longer term contractual arrangements currently being firmed up after recent test shipments providing positive feedback from the end users.
During the quarter the company reviewed a technical assessment of the mine including a new Life of Mine (LOM) plan based on the new mining contractor rates. The work has been undertaken by external Australian based mining consultants. This work has formed the basis for the independent technical reports as a pre-requisite for the intended Singapore listing of Delta Coal and the Tabalong Coal concessions. Subsequent to the September quarter third party peer reviews have been undertaken and expected to complete in the coming weeks.
During the September quarter the mine operations experienced only four rainfall affected days for a total of 95 millimetres which is significantly lower than any other reported period.
The September quarter average coal price received was US$36.90 (equated to FOB basis) per ton which was below the $38.51 reported in the previous quarter with coal sales ranging from 4,400 kcal /kg to 4,800 kcal/kg (GAR).
Production and sales for the quarter were as follows:
| Sept 2015 Quarter Tonnes | Sept 2014 Quarter Tonnes | 12 months to Sept 2015 Tonnes | |
| Saleable coal production (100% terms) | 56,995 | 280,192 | 342,355 |
| Coal sold (100% terms) | 121,692 | 317,820 | 435,272 |
| Saleable coal production (Altura 33⅓% share) | 18,985 | 93,397 | 114,118 |
| Coal sold (Altura 33⅓% share) | 40,564 | 105,940 | 145,090 |
Editing by Johannes Simbolon