Sebuku receives approval for extension of coal mine area

South Kalimantan-based coal miner PT Bahari Cakrawala Sebuku (BCS) has received approval from the Ministry of Energy and Mineral Resources to extend its existing Coal Contract of Work (PKP2B) project area by approximately 6,500 hectares.

BCS parent company Straits Asia Resources Ltd said Monday that the new area due west of the existing contract area extends over a significant portion of the shallow channel between existing contract area and the neighbouring island of Pulau Laut.

Straits Asia said the new extension area will generate additional resources of 31.5 million tons. This equates to an increase in the total resources at Sebuku from 71 million tons to 103 million tons.

?As exploration work and development plans progress over the next 3 years, it is expected that the new area will be redesignated as an exploitation area,? Straits Asia said in a statement to the Singaporean bourse, adding that exploration in the new area will commence shortly. (Robert)