Straits Asia to start new load-out facility construction in Q2

Singapore-listed coal miner Straits Asia Resources Limited said on Wednesday that the reconstruction of the second load-out facility at its Jembayan mine in East Kalimantan is expected to begin in the second quarter of the year.

The company said in a statement that the project is expected to be completed and operating by year end, at a cost of approximately US$20 million.

In October 2009, The company?s second load-out facilities at Jembayan Muara Bara mine collapsed due to a failure in foundation structure caused by heavy rains.

Before the incident, there were two load-out facilities of similar capacity at the site. The first load-out facility, callled Line 1, which has a nominal capacity of 5.5Mtpa, was not affected by the incident.

Straits is planning to expand Jembayan capacity to 11MTPA. (denny)