Straits Board okays Sebuku expansion plan

Australian mining firm Straits Resources Limited is proceeding with plan to increase output of its Sebuku coal mine in South Kalimantan.

The company said in a presentation material by CEO Milan Jerkovic released on Wednesday that the company?s Board had in February 2007 decided to proceed with expansion mine to 6 million tonnes per year over the next 2-3 years.

The company plans to produce 4MT from the mine in 2007.

Straits said in December 2006 that it had commenced the engineering and feasibility work required to progress the planned upgrade of the Sebuku coal processing plant, with a target to increase processing capacity to an annualised level of at least 6.0 million tonnes

The company also said that coal resource of more than 100 MT could support further expansion to 10MTPA.

Sebuku mine is 100 percent owned by Singapore-listed Straits Asia Resources, which, in turn, is 60.4 percent-owned by Straits. (alex)