Altura reports higher output from Delta Coal mine

By Romel S. gurky

ASX-listed Altura Mining Ltd said on Friday that production at Delta Coal mine in East Kalimantan during the quarter ending September increased by 19.56 percent to 68,145 tons compared to the same quarter of last year, but production has remained lower than plan despite efforts to increase contractor capacity.

The company said in a statement the ultimate production goal of an annual target of 1.5 million tons remains and is currently constricted by contracting capacity.

The company said it has attempted to negotiate additional capacity but is yet to secure sufficient services at a cost structure that will permit long term sustainable and profitable production.

?During the quarter the benchmark coal price for Indonesian coal continued to rise and it is hoped the duration of this increase continues into 2017 and beyond,? the statement said.

The typical Delta Coal product type has a reported benchmark increase of approximately 38 percent (4,800 kcal/kg) since January 2016. This increase provides Delta Coal with a greater opportunity to exploit its considerable coal resources should forecast production levels be achieved, Altura said.

The company has a stated intention to divest its interests in both the Delta and Tabalong coal assets. It is pursuing a number of options including the possible sale of the coal assets or an asset integration with other similar operations.

Editing by Reiner Simanjuntak