Altura reports higher Q4 coal production at Delta coal mine
Friday, January 30 2015 - 03:32 AM WIB
ASX-listed Altura Mining Ltd said that production at Delta Coal coal mine in East Kalimantan during the three months to 31 December 2014 was above the previous quarter with monthly average coal production of 120,106 tons (monthly average September quarter 2014 was 93,397 tons).
?Production in the December quarter 2014 was in line with the corresponding quarter in 2013. Production for the quarter was at an annualized rate of 1.44 million tons per annum (Mtpa) marginally below the 1.5Mtpa rate target for 2014,? said Altura, which owns more than 33 percent stake in the Delta coal project.
During the quarter the mine operations experienced 45 rainfall affected days for a total of 715 millimeters which is well above the overall September quarter total rainfall (September quarter - 32 rainfall affected days for a total of 329 millimeters).
Production for November and December was pleasing given these months received 285 millimeters and 342 millimeters respectively. The improved result was attributable to a concerted effort between the mining contractors and BMSA staff to improve pit sump locations and pumping strategies, Altura explained.
Total rainfall for 2014 was 2,524 millimeters over 169 rainfall affected days.
The December quarter average coal price was US$37.56 per ton for coal ranging from 4,400 kcal /kg to 4,700 kcal/kg (GAR). Delta targets an overall blend of between 4,800 kcal/kg to 5,000 kcal/kg (GAR). During the quarter production from two (2) of the higher calorie coal yielding pits suffered geotechnical failures which resulted in lower production of the higher calorie coals.
This led to an increased proportion of the lower calorie production in overall sales (with 72% of sales based on the 4,400 kcal/kg product).
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 stripratio 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.
Production and sales for the quarter were as follows:
Dec 2014 Quarter tons |
Dec 2013 Quarter tons | 12 months YTD Dec 2014 tons | |
| Saleable coal production (100% terms) | 360,317 |
355,593 | 1,281,340 |
| Coal sold (100% terms) | 385,903 |
452,332 | 1,319,824 |
| Saleable coal production (Altura 33⅓%) | 120,106 |
118,531 | 427,113 |
| Coal sold (Altura 33⅓%) share ) | 128,634 | 150,777 | 439,941 |
Editing by Reiner Simanjuntak