Sebuku production suffers from prolonged rain

Australian mining firm Straits Resources Limited reported on Wednesday bthat second quarter production from its Sebuku mine in South Kalimantan was below expectation due to prolonged wet season.

The company reported that second quarter production was 623,000 tonnes and cumulative six-month production was 1.457 million tonnes, far below 2007 production target of 4 MT.

“In the 6 months to June 2007 Sebuku recorded rainfall far in excess of the historical average for the period,” the company said in a quarterly report.

“Sebuku historically achieves higher production in the second half of the year and continues to pursue production in 2007 of 4.0 Mt, however, this is dependent on the mines production recovery from the recent high rainfall,” the company said.

According to the company, the mine continues to increase its footprint and accelerate waste removal in line with Sebuku’s expansion plan to 6 Mtpa. “The expansion works to 6 Mtpa are well under way with the plant and infrastructure expected to be completed by mid 2008. Production in 2008 is targeted at 5 Mt and 6 Mt in 2009.” (alex)

Summary Operation		Quarter Ended 30 June-07	Quarter Ended 31 March-07	Half Year 30-June-07	Half Year   30-June-06
Coal mined	t'000	694	1,005	1,699	1,856
Product coal	t'000	623	834	1,457	1,641
Sales	t'000	652	851	1,503	1,752