Straits reports higher Q3 coal production, sales
Monday, November 2 2009 - 01:15 AM WIB
The Jembayan mine set new records with production and sales of over 2 million tonnes for the quarter. The performance was achieved by efficient operation of the mine?s original load out facility and supplemented by the commissioning of a second load out facility (Line 2) during the quarter. On 16 October 2009, Straits Asia announced that Line 2 would have to be dismantled.
Temporary facilities to replace Line 2 are being implemented as quickly as possible and a team is developing designs and plans for a long-term replacement. Mining of coal has not been affected by this development and the contractor at the Jembayan mine is continuing its programme for waste removal and mobilising equipment in line with the Group?s plans.
The company said that despite the conveyor?s dismantling, it expected that its priced coal contracts will continue to be delivered on schedule
The Sebuku mine recorded Q3 2009 production and sales of 0.5 million tonnes, in line with Straits Asia?s expectations. The processing of permits for mining in the newly re-zoned area is progressing satisfactorily and Straits Asia still anticipates that it will commence mining in areas of the Northern Leases immediately to the north of its existing pit, during the first half of 2010, it said.
Mining in the re-zoned area will substantially remove the constraints that the Sebuku mine has been experiencing over the past 2 years, it added.
The company reported that average selling price in Q3 2009 was US$78.5 per tonne, which is lower than the year-to date average of US$82.3 per tonne, and was affected by a concentration of lower-priced shipments particularly during September.
Cash costs of mining averaged US$39.0 per tonne, helping the Group to achieve EBITDA of US$75 million in Q3 alone, up from US$55 million for the corresponding period last year.
Straits also reported that the two main programmes at Jembayan and at Sebuku?s Western Leases, have continued during Q3 2009 with successful results.
At Sebuku, the results of drilling have given enough confidence for the Group to start a pre-feasibility study as the next stage of the Western Leases project.
Straits Asia expects to begin drilling the Northern Leases at Sebuku later in 2009.(denny)
| Q3 2009 | Q3 2008 | YTD Q3 2009 | YTD Q3 2008 | ||
| Jembayan Coal Mine | |||||
| Waste movement (bcm) | t,000 | 22,215 | 13,888 | 54,693 | 35,770 |
| Coal mined | t'000 | 2,038 | 1,296 | 4,810 | 3,682 |
| Product coal | t'000 | 2,068 | 1,241 | 4,782 | 3,739 |
| Sales | t'000 | 2,099 | 1,319 | 4,994 | 3,587 |
| Average Selling Price (FoB basis) | 77.42/t | 66.70/t | |||
| Sebuku Coal Mine | |||||
| Waste movement (bcm) | t'000 | 2,230 | 3,193 | 5,996 | 12,615 |
| Coal mined | t'000 | 621 | 990 | 1,774 | 3,325 |
| Product coal | t'000 | 525 | 851 | 1,458 | 2,811 |
| Sales | t'000 | 503 | 933 | 1,361 | 2,862 |
| Average Selling Price (FoB basis) | $82.82/t | $88.53/t | |||