Straits reports Indonesia Q3 coal output, sales
Wednesday, October 22 2008 - 05:53 AM WIB
Sebuku Coal Mine, South Kalimantan
Straits Asia Resources Ltd? 100% Coal Co-operation Contract
Sebuku production moved lower in the September quarter in line with the higher seasonal rainfall in this period and the religious fasting month of Ramadan.
Total production from the mine for the 3rd quarter was 851 kt with 933 kt of coal sold. Total coal produced and sold at Sebuku YTD is 2,811 kt and 2,862 kt respectively.
Operations for the fourth quarter are focused on developing the deeper areas of the pit in preparation for the wet season in 2009. Provided waste mining targets can be achieved, this should result in higher production for the fourth quarter due to the lower stripping ratio and higher bypass ratio in these areas.
Jembayan Coal Mine, East Kalimantan
Straits Asia Resources Ltd? 100%
Production continued to improve at Jembayan during the September quarter, with the arrival of new equipment and the commencement of mining from two new pits.
Total production from the mine for the September quarter was 1,241 kt with 1,361 kt of coal sold.
Total coal produced and sold in 2008 at Jembayan is 3,739 kt and 3,629 kt respectively. Production is scheduled to increase further in the fourth quarter as more additional equipment is added to the fleet, and more coal is exposed and mined in the new pits.
Ongoing exploration, resource definition drilling and mine planning work has allowed resources and reserves at Jembayan to be upgraded to 138 Mt and 92 Mt respectively. It is expected that further upgrades to resources and reserves will be made over the next 6 months.
The total production target for Straits Asia Resources remains at 9 million tonnes for calendar 2008.
Exploration
During the September quarter exploration activities undertaken by Straits have focussed at the Sebuku, Jembayan mine sites and the Laung Coking Coal Project. All projects are located in Kalimantan,Indonesia.
At Sebuku, exploration activities have focused on defining resources below the historically mined Kanibungan pit and in the Sebuku Strait. Drilling at Kanibungan comprised of 164 holes for a total of 8,181m. Drilling in the Sebuku Strait utilised two diamond rigs, this drilling continues to confirm numbers and thicknesses of coal seams in line with the previously released resource. The drilling will continue through 2009.
Drilling activities have continued at the Jembayan Project during the quarter. To date a total of 375 holes have been completed for a total of 76,100m utilising 12 drill rigs. Drilling at the centre of syncline has intercepted 17 seams with a total coal seam thickness of approximately 32m being recorded. A progressive update of resources and reserves for Jembayan was released during the September quarter.
In mid June drilling activities commenced at the Laung Coking Coal Project located in central Kalimantan utilising a single drill rig with a 400m depth capacity. A second drill rig has been sourced and is expected to be on site in early October. Seven holes of the initial phase one programme have been completed to date, with only one hole returning a significant coal intercept. The first seven holes have targeted the eastern margins of the surface mapped coal seams, future drilling will test the more significant surface outcrops. (end of excerpt)
| ? | Quarter ended 30 Sept. 2008 | Quarter ended 30 June 2008 | Quarter ended 31 March 2008 | YTD | |
| Sebuku Coal Mine | |||||
| Coal mined | t'000 | 990 | 1,064 | 1,271 | 3,325 |
| Product coal | t'000 | 851 | 1,009 | 951 | 2,811 |
| Sales | t'000 | 933 | 1,079 | 850 | 2,862 |
| Jembayan Coal Mine | |||||
| Coal mined | t'000 | 1,296 | 1,189 | 1,197 | 3,682 |
| Product | t'000 | 1,241 | 1,301 | 1,197 | 3,739 |
| Sales | t'000 | 1,361 | 1,083 | 1,185 | 3,629 |