Straits Asia secures initial forestry permit for Sebuku concession

Singapore ?listed coal mining firm Straits Asia Resources Limited announced on Tuesday that the Minister of Forestry has issued the Principle Licence (Izin Prinsip) for the Northern Leases at Sebuku island, South Kalimantan.

The Izin Prinsip is the precursor to the Izin Pinjam Pakai (Borrow and Use Licence) and its main purpose is to confirm rights to conduct extraction of coal provided certain final conditions are met. The Izin Prinsip sets out the conditions and, once they are fulfilled, mining and exploration may commence in the permitted area, the company said.

The Northern Leases are a key part of Straits Asia?s long-term strategy for mining its concessions at Sebuku. The area lies immediately to the North of the mine?s Tanah Putih pit and the same coal seams are continuous into the Northern Leases.

Straits Asia already holds a general body of information about the coal and geology in the Northern Leases and expects to commence work in the Northern Leases relatively quickly after the Borrow and Use Licence is issued, which will lead to the long-awaited ramp up of production from Sebuku mine, the company said. (alex)