Straits reports Indonesia Q2 coal output, sales
Monday, July 28 2008 - 05:07 AM WIB
Sebuku Coal Mine, South Kalimantan
Straits Asia Resources Ltd -100% Coal Co-operation Contract
Sebuku improved its performance in the June 2008 quarter against the previous quarter despite higher than anticipated rainfall.
The mine produced and sold a total of 1,009 kt and 1,079 kt of coal respectively. Total coal produced and sold year to date at Sebuku is 1,960 kt and 1,929 kt respectively.
Production is expected to improve further in the third quarter with the arrival of the seasonal drier climate and the mine is also expected to produce more bypass coal at the deeper area of the pit.
During the June quarter exploration activities undertaken by SARL have focussed on the Sebuku/Jembayan mine sites and the Laung Coking Coal Project.
At Sebuku, exploration activities have focused on defining resources below the historically mined Kanibungan pit and in the Sebuku Strait. The drilling at Kanibungan has comprised 82 holes for a total of 4,540m utilising 4 Sebuku site power rigs. Drilling in the Sebuku Strait continues to define numbers and thicknesses of coal seams in line with the previously released resource. The drilling is expected to be completed by the end of August 2008.
Jembayan Coal Mine, East Kalimantan
Straits Asia Resources Ltd - 100%
After the acquisition of Jembayan in December 2007, the production performance at the mine continued to improve despite the unusual wet season.
Production and sales at Jembayan were 1,301 kt and 1,083 kt respectively in the June quarter. Lower sales were due to the delay of two vessels which slipped out to early July 2008. In the 6 months to 30 June, the mine produced a total of 2,498 kt of coal and recorded sales of 2,268kt in line with the production target for 2008.
All major contracts have been renegotiated to facilitate increased production volumes in the future, with the arrival of the seasonal dry weather and an increase in mining capacity. Management is confident that the production performance at Jembayan will improve further in the second half of 2008.
Target production from Straits Asia is still expected to be 9 Mtpa for calendar year 2008.
There continues to be a strong focus on exploration at both operations in order to increase the resource/reserve base and to assist with the establishment of an effective and sustainable long term mine plan.
A progressive update on resource/reserves for the Jembayan mine is expected to be released in the current quarter.
Drilling activities have continued at the Jembayan Project during the quarter, for the completion of 177 holes. A total of 34,799 m has been drilled utilising 12 rigs.
The thickest seam drilled was seam 55 with thickness of up to 9 m of coal. A progressive update of resources and reserves for Jembayan is expected to be released in the September quarter 2008.
Drilling activities commenced in mid June at the Laung Coking Coal Project in central Kalimanatan utilising a single drill rig with a 400m depth capacity. By the end of June a single hole drilled to a depth of 350m has been completed. Four main seams were intercepted with a thickness of up to 1.3 m. Coal quality results are awaited.(end of excerpt)
| ? | Quarter ended 30 June 2008 | Quarter ended 31 March 2008 | Half Year 30 June 2008 |
Half Year 30 June 2007 |
|
| Sebuku Coal Mine | |||||
| Coal mined | t'000 | 1,064 | 1,271 | 2,335 | 1,699 |
| Product coal | t'000 | 1,009 | 951 | 1,960 | 1,457 |
| Sales | t'000 | 1,079 | 850 | 1,929 | 1,503 |
| Jembayan Coal Mine | |||||
| Coal mined | t'000 | 1,189 | 1,197 | 2,386 | na |
| Product | t'000 | 1,301 | 1,197 | 2,498 | na |
| Sales | t'000 | 1,083 | 1,185 | 2,268 | na |