Sebuku achieves record coal output and sales of 3 MT

Australian mining firm Straits Resources Limited reported Friday that Sebuku coal mine in South Kalimantan achieved a record December quarter production and sales performance.

Straits said the coal mine output reached 868,000 tons, an increase of 7 percent on the previous quarter.

Sebuku's production for the 12 months to December 2005 totaled 3.0 million tons (2.56 million tons in 2004). Sales for the quarter and year were 878,000 and 2.91 million tons respectively.

?The coal mining contractor, BUMA, performed strongly in the second half of the year by improving equipment utilisation as well as providing additional fleets of mining equipment,? the company said in its quarterly report.

Straits said installed capacity is believed to be more than adequate to meet the 3 million tons per annum target for 2006. However, as in previous years subject to market conditions, the mine will be striving for an increase in production and sales above these levels.

Straits also said the effects of the wet season would be mitigated by opening up low strip ratio satellite pits as emergency supply in the event of high rainfall.

According to the report, resource drilling at Sebuku continues with exploration continuing to focus on the area west of the Tanah Putih pit. The full exploration program is expected to take at least a further 12 months before the full drill out is completed and the total extent of the resource is defined.

A new resources and reserve upgrade for Sebuku is anticipated within the current quarter, Straits added.

Straits has 100 percent stake at PT Bahari Cakrawala Sebuku, the operator of Sebuku mine. (Robert) (Robert)