Straits reports Indonesian Q4 coal output, sales
Friday, January 30 2009 - 01:02 AM WIB
Sebuku Coal Mine, Indonesia
Straits Asia Resources Ltd (SGX:SAR) 100%
Coal Co-operation Contract
Total production from Sebuku for the December quarter was 720 kt with 745 kt of coal sold. Total coal produced and sold at Sebuku in 2008 was 3,531 kt and 3,607 kt respectively.
For the reporting period the operation recovered slowly from the high rainfall experienced in September. Production was in line with revised forecasts, which factored in the early onset of the monsoon season.
The main Tanah Putih pit is gradually being constrained by the forestry limits that are currently the subject of a re-zoning application. Considerable work was undertaken during the reporting period on finalising plans for maximum coal recovery and improved mining efficiency in 2009.
Cash costs for the operation were favourably impacted by the steep decline in the diesel price.
Jembayan Coal Mine, Indonesia
Straits Asia Resources Ltd (SGX:-SAR) 100%
Jembayan performed strongly for the reporting period achieving total production for the December quarter of 1,316 kt and 1,356 kt of coal sold. Production was increased by the arrival of additional equipment and the commencement of mining from two new pits. For Jembayan the total coal produced and sold in 2008 was 5,055 kt and 4,985 kt respectively. In December the operation achieved record production and sales for a single month .
The extensive drilling programme at Jembayan continues with the work so far generating an upgrade of resources to 254 Mt. The exploration programme is set to continue for at least another 18 months as only 25% of the total concession area has been drilled.
The total production target for Straits Asia Resources in calendar 2009 is set at 9 to 11 million tonnes.
EXPLORATION
Straits Asia Resources (SARL)
Straits 47%
During the September quarter exploration activities undertaken by SARL have focussed at the Sebuku, and 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 198 holes for a total of 9,758m. 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 540 drill holes have been completed for a total of 106,305m utilising 15 surface drill rigs. A progressive update of resources and reserves for Jembayan was released during the September quarter; further updates will be released when required.
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. To date, only thin intercepts of coal have be encountered and further follow up drilling of the mapped outcrops continues. (end of excerpt)