Sebuku Coal achieves another strong quarter

Australian mining company Straits Resources Limited said Wednesday it had achieved another strong quarterly result on the back of record first quarter production from its flagship Sebuku Coal operation in South Kalimantan.

Straits said despite slower due to the rainy season, Sebuku produced in excess of 626,000 tons of thermal coal for the March 2005 quarter, up 13 percent on the corresponding quarter last year, and generating A$25.2 million in sales.

?With higher priced sales contracts kicking in, and the operation continuing to outperform, Sebuku will remain Straits? largest earnings contributor in the medium term,? Straits? CEO Milan Jerkovic said, adding that the Sebuku coal mine remains on track to produce 3 million tons of coal in 2005.

In addition, positive exploration results near the mine area and to the north at the Tanah Putih area bode well as the company seeks to increase the resource base at Sebuku and extend the life of mine, Jerkovic said.

According to company's March 2005 quarterly report, ongoing near-mine exploration within the coal Contract of Work has identified additional coal (number 80 seam) and raised the possibility that this particular seam may be more expansive than previously thought.

Straits shareholders approved in March 2005 the purchase of the remaining 20% interest in the Sebuku coal operation, moving the company to full ownership. In terms of the agreement Straits paid US$20 million to the vendors in new Straits shares.

Straits added that seventy percent of these shares were on sold to institutions in a back to back arrangement. (Robert)