Altura says Q1 coal output from Delta mine up 36%
Two Tabalong tenements upgraded to operation production status
Wednesday, April 30 2014 - 04:47 AM WIB
ASX-listed Altura Mining Limited (AJM) said production from Delta coal mine, in East Kalimantan, during the first quarter of this year increased by 36 percent to 354,206 tons compared to the same period of last year.
The company, however, said in its quarterly report released on Wednesday that monthly production level averaged 118,069 tons, which was below the target of 146,000 tons due primarily to lower contractor productivity because of the wet conditions and temporary longer haulage road distance.
?During the quarter the mine operations experienced 49 rainfall affected days for a total of 566 millimetres which is below the overall December quarter total rainfall but a similar amount of rain affected days (December quarter - 51 rainfall affect ted days for a total of 772 millimetres),? the report said.
The March 2014 quarter average coal price of US$44. 82 per ton (FOB Barge) was marginally lower than the $44.99 average price for the December quarter. Sales for the March quarter totaled 321,873 tons which is 29 percent below the December quarter of 452,332 tons.
?The coal market remains quite soft with pressure remaining on pricing particularly for medium grade thermal coal such as Delta Coal?s typical specification,? it said.
| March 2014 Quarter Tons | March 2013 Quarter Tons | 9 months YTD March 2014 Tons | |
| Saleable coal production (100%) | 354,206 | 261,287 | 1,089,734 |
| Coal sold (100% | 321,873 | 345,591 | 1,036,051 |
| Saleable coal production (Altura 33⅓% | 118,069 | 87,096 | 363,245 |
| Coal sold (Altura 33⅓% | 107,291 | 115,197 | 345,351 |
Elsewhere, the company said that during the quarter further negotiations were completed with the Delta Coal mining contractors to further reduce the current mining costs at the mine. ?These successful negotiations were completed on a mutual fairness basis whereby the rates are linked to coal index pricing and provides all parties with a fair result in rising and falling coal markets.?
The Delta Coal mine is situated on a 1,260 hectare Izin Usaha Pertambangan (IUP) or Mining Permit in the Mahakam River Delta, in close proximity to the nearby major centers of Balikpapan and Samarinda. Altura has a 33 percent stake in the project.
In addition to the Delta coal mine, Altura holds a 70 percent stake in the Tabalong coal project in South Kalimantan, where local partner PT Unitras Jaya Investama holds the remaining 30 percent.
The Tabalong coal project has five coal mines. The company said in the quarterly report that it has obtained the necessary permits to upgrade the remaining two tenements namely Kodio Multicom (KM) and Marangkayu Bara Makarti (MBM) to operation production status during the quarter.
?Both KM and MBM were upgraded from Exploration to Operation Production status on 11 March 2014 for a period of 20 years,? the report said.
The Operation Production approval is a significant step forward for these tenements however further statutory approvals (including forestry permits) will be required before mining activities can commence, the firm added.
The KM and MBM tenements are located immediately south of the three other tenements that completes the Tabalong joint venture.
Editing by Reiner Simanjuntak