Straits Asia says coal prices outlook remains strong

Singapore-exchange listed coal mining group Straits Asia Limited, which will soon change its name to Sakari Resources Limited said on Wednesday that the outlook for the coal prices remains strong, which is encouraging for the remainder of 2011.

As at 30 June 2011, Straits has committed 87% of planned production of 2011 for sale. Of the remaining shipments for the year, approximately half are prices on an index linked basis

Straits said that during second quarter of 2011, average selling price reached US$94.6 per tonne, an increase 31 percent compared to the same period last year, which was $72.17 per tonne.

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

The record ASP result is pleasing given the general easing in international prices from Q1 levels. This outcome has been achieved as part of a strategy of diversifying sales to include index-linked pricing arrangements, it said.

During Q2, Straits also took advantage of renewed buying interest from China with an increase in spot sales for the quarter. Following on from the benchmark settlement in Japan during the quarter, Straits also settled the annual price for a number of Strait's long term, fixed-priced contracts.

Straits Asia is expecting to produce 11.5 million tonnes this year, up by around 1 million tonnes compared to the last year?s production of 10.55 million tonnes. Until first half of this year, Straits Asia has produced 5.45 million tonnes. (denny)

?	Q2			H1
	2011	2010	Increase	2011	2010	Increase
ASP ($/t)	94.60	72.17	31%	88.52	71.54	24%