Straits announces CPP procurement for Sebuku mine

Singapore Exchange-listed coal miner Straits Asia Resources announced on Thursday that it has completed acquisition of additional coal processing facilities in order to facilitate expansion programme at its Sebuku coal mine in South Kalimantan.

According to the company, the expansion will enable a production output of 10 million tonnes per annum.

Commissioning will be completed incrementally over the next 10 months, said the company, and negotiations with Sebuku s mining contractor to ramp up its production to match the increased coal processing plant capacity are at an advanced stage.

?It is anticipated that the first incremental expansion will be completed in July 2007, increasing production capability to 6 million tonnes per annum,? the company said.

?These initiatives and the fortuitous early availability of equipment will result in significant time and cost savings on the original capital works plan. Additionally the company will enjoy the cash flow benefits from the expansion earlier than anticipated.?

Straits Asia Resources is a unit of Australian miner Straits Resources Limited. (alex)