Straits Asia H1 coal sales, price up

Singapore-listed coal mining group Straits Asia Limited, which will soon change its name to Sakari Resources Limited announced Wednesday that the coal sales from its two coal mines in Kalimantan reached 5.16 million tonnes during first half of 2011, only up 2 percent compared to the same period last year, which was 5.07 million tonnes.

Straits said that of totaled 5.16 million tonnes of coal sales during first half, about 4.7 million tonnes of coal was sold from its East Kalimantan coal unit PT Jembayan Muarabara and remaining from its South Kalimantan coal unit PT Bahari Cakrawala Sebuku.

?Jembayan reached record production for the half year. Both mines had quieter second quarters in terms of coal production compared to Q1 2011 mainly due to waste movement and higher strip ratios. The mine plans for 2011 remain on track. Weather presented no special difficulties for the operations,? the company said.

Average coal selling price during the period increased 24 percent compared to the same period of last year to 88.52 per tonne, Straits said.

Straits also reported that all the licenses required to enable Sebuku to mine the northern leases area have been obtained and development activity in the area started in Q2 2011

In April 2011, coal sample drilling progressed into the area where the Tanah Putih pit will be extended and the work has progressed sufficiently for mining preparatory work to start with bund walls being established to contain the swampy conditions. Consistent with previous indications, Straits Asia anticipates the first sale from Sebuku's northern leases in Q4 2011.

Straits plans to bring its Northern Leases into production in Q4 2011 with a target of about 200,000 tons production on top of the mine's existing target of 1.4 million tonnes for 2011. (denny)

Kt	3 Months Ended 30 June		6 Months Ended 30 June
Sebuku	2011	2010	2011	2010
Coal mined	339	219	778	504
Product coal	282	199	676	443
Sales	263	267	595	479
Jembayan	?	?	?	?
Coal mined	2,120	2,315	4,340	4,395
Product coal	2,352	2,465	4,777	4,556
Sales	2,214	2,591	4,561	4,593
Total	?	?	?	?
Coal mined	3,459	2,534	5,118	4,899
Product coal	2,634	2,664	5,453	4,999
Sales	2,477	2,858	5,156	5,072