Jembayan mine is fully commissioned for 12 MTPA, Sakari says

Singapore-listed coal mining group Sakari Resources Limited, formerly Straits Asia Limited said on Thursday that its infrastructure at Jembayan mine in East Kalimantan is fully commissioned for 12 million tonnes per annum (MTPA), following successful repair works to full operation of its second load-out facility.

In October 2009, the second load-out facility collapsed due to a failure in foundation structure caused by heavy rains. Prior to the incident, there were two load-out facilities of similar capacity at the site. The first load-out facility, callled Line 1, which has a nominal capacity of 5.5 million tonnes per annum, was not affected by the incident

The company said that the mine is expecting to produce 12 MTPA in 2013, but it plans to produce around 10 million only for next year, little up from this year?s target of 9.5 million tonnes.

The company is also targeting to increase coal output from its other coal unit PT Bahari Cakrawala Sebuku in South Kalimantan. Sebuku mine is planning to produce 2.5-3 million tones next year, doubling this year?s target of 1.4 million tonnes.

The additional coal from Sebuku mine will be taken from its Tanah Putih pit in Northern Leases area. Sakari has started coal production from Northern Leases in September this year.

In 2010 Jembayan produced 9.45 million tonnes and Sebuku 1.1 million tonnes.

In total, Sakari is expecting to produce 11.5 million tonnes this year, up by around 1 million tonnes compared to the last year?s production of 10.55 million tonnes. Until first half of this year, Sakari had produced 5.45 million tonnes

The company said in a presentation that the selling price this year is estimated to average close to US$90 per tonne, higher than earlier estimate of US$80-85 per tonne. The company?s average selling price for last year was $72.81 per tonne. (denny)