Rain forces Straits to cut Sebuku production

Australian mining firm Straits Resources Limited reported on Thursday that coal production from its Sebuku mine in South Kalimantan was adversely impacted in the third quarter of 2007 due to extreme rainfall which resulted in the mine declaring force majeure in early August.

The company also said that additional pumping capacity was installed and the mine has since resumed normal operations with force majeure lifted on 31st August 2007

The company reported that during the third quarter, Sebuku produced 718,000 tonnes of coal and 2.175 MT for the year to date.

Total production for 2007 is now forecast at between 3.4 and 3.6MT, lower that initial estimate of 4MT the company set in may 2007.

According to the company, Sebuku continues to increase its footprint and accelerate waste removal in line with expansion plan to 6 MTPA by 2009.

Meanwhile, the company also reported that exploration activities continue to define further extensions to the existing coal seams at Sebuku.

Straits indirectly controls 100 percent stake at Sebuku through its Singapore Exchange-listed subsidiary Straits Asia Limited.(alex/denny)

Summary Operation		Quarter Ended 30 Sept-07	Quarter Ended 30 June-07	Quarter Ended 31 Mar-07	Year to 30 Sept 207	Year to 30 Sept 06
Coal mined	t'000	841	694	1,005	2,540	2,989
Product coal	t'000	718	623	834	2,175	2,500
Sales	t'000	539	652	851	2,042	2,485