Straits extends Sebuku mining concession area

Singapore Exchange-listed coal miner Straits Asia Resources Limited announced Tuesday that it has received approval from Indonesia?s Ministry of Energy and Mines for a new area totaling 5,121 hectares for exploration and mining at Sebuku Island, South Kalimantan.

The new area lies immediately to the north of Straits Asia?s Western Leases, just offshore Sebuku Island and also adjoins the onland Northern Leases, the company said.

Straits Asia will surrender from the existing concession area 3,233 hectares of land that is no longer considered prospective for mining.

The Western Leases and the Northern Leases have already disclosed 296 million tonnes and 34 million tonnes respectively of inferred and indicated resources.

?Straits Asia expects that it will now be able to demonstrate that the coal seams in the Western and Northern Leases extend north and west into the new area,? it said.

Drilling of this new area will commence in 2009 and Straits Asia will add plans for the eventual mining of the area to the technical feasibility studies and plans that have already begun for mining in the Western Leases.

The area will be held under Straits Asia group?s coal contract of work, the terms of which are otherwise unchanged by the new area extension.(alex)