Straits reports Jembayan coal resource increase

Singapore exchange-listed coal firm Straits Asia Resources Limited announced on Monday a further resource increase at the Jembayan mine, East Kalimantan, and a major increase in the in-situ target.

Total JORC Resources have increased to 254 Mt from 138 Mt and a revised exploration target for in-situ coal at Jembayan increased to 600-700 Mt, the company said in statement.

Richard Ong, CEO of Straits Asia said, ?This is the second upgrade of Jembayan?s resource that we have announced since acquiring the mine in December 2007. The latest information confirms our decision to put the main force of our operational management efforts behind the expansion of Jembayan, which will have installed production capacity of 11 Mtpa in place by mid-2009. We are targeting production in the range of 7-8 million tonnes from Jembayan in 2009."

The next phase of the programme is scheduled to cover 2,700 hectares additional to the 3,000 already explored. The total concession at Jembayan exceeds 12,000 hectares.

?The coal quality remains consistent with products now being sold from Jembayan and that will help us to establish the Prangat and Jembayan brands and optimize pricing for sales,? he added. (denny)