Altura Mining?s Q3 coal output falls
Friday, October 31 2014 - 03:04 PM WIB
ASX-listed Altura Mining Limited (AJM) said on Friday the coal production of its subsidiary Delta Ultima Coal during the three months to Sept. 30, 2014 was in line with the previous quarter with monthly average coal production of 280.192 tons, including 93,397 tons in AJM?s share.
AJM?s monthly average share in the June quarter 2014 was 95,452 tons, according to the firm.
The firm has one third stake in Delta Coal, the owner and operator of PT Binamitra Sumberarta mine in East Kalimantan, which it bought last year for US$25 million.
However, the firm said, production in the September quarter 2014 was some 26 percent below the corresponding quarter in 2013. Production for July and August was substantially below plan at 70,959 tons and 83,605 tons (AJM?s share) respectively, although improved weather and mining conditions in September resulted in production of 125,628 tons of coal which is at the desired 1.5 million tons per annum (mtpa) production rate.
During the quarter the mine operations experienced 32 rainfall affected days for a total of 329 millimetres which is well below the overall June quarter total rainfall (June quarter - 53 rainfall affected days for a total of 913 millimetres). The most significant change was the month of September which recorded only a single rainfall day and 1 millimetre of rainfall demonstrating the contrasting wet and dry seasonal influence.
The September quarter average coal price of $32.17 per ton was lower than the $43.35 average price for the June quarter with the average selling price reflected in the volume of lower energy product sales. Sales for the September quarter totalled 317,820 tons compared to the June quarter of 294,228 tons. Sales for the quarter were focussed at reducing stock levels of the 4,400 kcal (GAR) coal in line with demand for this product. A total of 286,378 tons of this product was sold during the quarter.
The Delta mining operation is based on a strategy to blend the coals mined currently from the discrete pits. Currently the mine is operating in five (5) separate pits within the concession; these are identified as Pit 2N, Pit 21, Pit 29, Pit 37 and Pit 43. The coals from these pits can vary in both quantity and quality which is taken into consideration by the mine according to their marketing requirements.
Each of these pits can also operate under a different cost mechanism determined by a mix of strip ratio and waste haulage distance. The opportunity this method provides Delta is to offset higher and lower stripping and waste haulage costs within each of its contractors? mining areas which in turn allows the mine to operate under an average mining cost scenario whereby the higher strip ratio and higher value coals are offset with lower strip ratio and lower value coals.
During the September quarter both Pit 29 and Pit 43 suffered internal wall failures due to increased rainfall and softer low wall material. Pit 43 suffered minor delays however Pit 29 was the subject of a review and redesign of both access and mining location. The variance from the plan resulted in lower than forecast production in July and August.
The company also said it is working with independent consultants to update the current Coal Resource estimate for the Tabalong Coal project. This work is scheduled for completion in the December quarter.
The Tabalong Coal Project consists of five Mining Licences (IUPs) in the province of South Kalimantan onthe island of Borneo. All five IUPs are granted for Operation Production and Altura is seeking the necessary Forestry Land Use approvals to allow mining to proceed.
The firm said it already received In-Principle Forest Area approval from the Minister of Forestry for the SPK IUP in the Tabalong project.
Editing by Johannes Simbolon