Straits may lift Sebuku force majeure by end of month

Singapore Exchange-listed mining firm Straits Asia Resources said on Tuesday that force majeure status on coal shipments from its Sebuku mine in South Kalimantan is still in effect and would likely be lifted by the end of the month.

?At this time Sebuku continues to operate under the provisions of force majeure. The position is being monitored and reviewed on a regular basis and an announcement lifting force majeure will be made as soon as the mine has returned to normal operating conditions and production levels,? the company said in a report.

?Based on current recovery plans and increased pumping arrangements this is expected to occur before the end of August 2007.?

Sebuku was forced to declare force majeure status at the end of July due to excessive rainfall that hit the area since January. The rain had caused the mine?s first half production fell to 1.5MT in 2007 compared with 1.76 last year.

The company also said that the mine?s plan to boost annualize production to 6MTPA by mid-2008 might also be delayed by 3-4 months. ?Part of the recovery plan currently underway also captures a significant upgrade to the operation?s pumping and water management capabilities that will serve to bolster the mine?s ability to operate through similar rainfall events to those recently experienced in future,? the company said.

The company also said Sebuku would likely miss 2007 sales target of 4MT. ?Latest projections indicate a full year sales range between 3.4 and 3.6 MT,? the company said. (alex)