Straits plans Singapore Exchange listing for its coal unit

Australian mining company Straits Resources Limited plans to list its unit at The Singapore Exchange (SGX) this year, a company official said on Thursday.

Straits chairman AD Toms when addressing the company annual general meeting said that the assets of the new company to be listed in SGX including Straits? Sebuku coal mine in South Kalimantan.

?The new enterprise would focus on acquiring and developing mining-related projects to service the Asian region, and as such, should appeal to regional investors with appetite both income and exposure to Asian commodity markets ,? he said.

Tom said Straits would continue to keep significant stake at the new company.

Straits has 100 percent shares in PT. Bahari Cakrawala Sebuku, the owner of Sebuku mine. The company plans to produce 3.5 million tones of coal this year, with the intention to ramp up production to up to 6 MTPA at the last three years of the mine?s life. The mine will produce 4 MTPA starting next year for until 2017.

Aside from Sebuku, Straits also controls PT.Indomuro Kencana, a Central Kalimantn gold miner with 2006 production estimated around 110,000 ounces. It is not immediately clear if Straits would include the gold mine in the new company. (alex)