Altura reports lower Delta Coal production
Friday, January 29 2016 - 02:56 AM WIB
ASX-listed Altura Mining Ltd said Friday that production at its more than 33 percent-owned Delta Coal mine in East Kalimantan during the fourth quarter of last year has been lower than target amid the lingering coal price downturn.
?Production at Delta Coal during the 3 months to December 2015 remained below the annual target of 1.5Mt with contracting capacity well below plan,? the company said in a statement.
Altura said it has continued negotiations with its current contractors in an effort to increase tonnage and reduce mining costs. ?Reductions in the delivered fuel price have provided some respite, however, further cost cuts are being investigated to allow for sustaining operations in the challenging thermal coal market.?
The company said that 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 maximize the extraction of the mine?s considerable coal resources.
Altura said coal demand remained strong during the quarter with a major international commodity trading group taking all saleable coal and indicated they have further capacity should the production return to the desired levels. Coal is currently being sold into both China and Philippine thermal markets with the focus on a longer term contract(s) into the latter market.
As previously reported Delta Coal had completed a revised Life of Mine (LOM) plan based on the new mining contractor rates and potentially new mining reserve areas. The work has been undertaken by external Australian based mining consultants; with the updated Coal Resources and Reserve estimates to be released in the near future.
The December quarter average coal price received was US$35.84 (equated to FOB basis) per ton which was below the $36.90 reported in the previous quarter with coal sales ranging from 4,400 kcal /kg to 4,800 kcal/kg (GAR).
Altura said during the December quarter the mine operations experienced only two rainfall affected days for a total of 29 millimeters which is significantly lower than any other reported period and well below historical seasonal averages.
Production and sales for the quarter were as follows:
| Des 2015 Quarter tonnes | Des 2014 Quarter tonnes | 6 Month to Des 2015 Tonnes | 6 Month to Des 2014 Tonnes | |
| Saleable coal Production (100% Term) | 123,219 | 360,317 | 180,214 | 640,509 |
| Coal sold (100% Term) | 120,205 | 385,903 | 241,897 | 703,723 |
| aleable coal Production (Altura 331/3% Share) | 41,073 | 120,106 | 60,071 | 213,503 |
| Coal sold (Altura 331/3% Share) | 40,068 | 128,634 | 80,632 | 234,574 |
Editing by Reiner Simanjuntak