Straits expands Indonesian coal mines installed capacity

Singapore Exchange-listed coal miner Straits Asia Resources Limited is investing US$72 million to increase installed capacity at its two Indonesian mines to 19 million tonnes per annum.

The company said in a presentation released Tuesday that the company?s Jembayan Muara Bara mine in East Kalimantan will have installed capacity of 11 MTPA starting the second quarter of this year. The mine will have crushing capacity of 11MTPA, barge loading conveyors with capacity of 15MTPA and 300,000 tonnes port stock pile.

The mine, which currently has marketable reserves of 112 MT, produced 5 million tonnes of coal in 2008.

?Production is expected to improve further in 2009 as more equipment is added to the fleet and more coal is exposed and mined in the pits,? the company said.

The company also said installed capacity of its Sebuku mine in South Kalimantan would be raised to 8 MTPA starting the first half of this year with the installation of a duplicate coal processing plant and associated infrastructure.

Last year, Sebuku produced 3.5 million tonnes of coal.

The company said in January 30, 2009 that total production target for Straits Asia Resources in calendar 2009 is set at 9 to 11 million tonnes. (alex)