Straits reports Kalimantan Q1 coal output, sales

The following is an excerpt from Straits Asia Resources on Kalimantan coal project, taken from the quarterly report ended March 31, 2009 released on Wednesday.

Sebuku Coal Mine, South Kalimantan
Straits Asia Resources Ltd (SGX: SAR) - 100%
Coal Co-operation Contract

Sebuku produced and sold 531kt and 403kt respectively in the March 2009 quarter. As expected Sebuku mine?s production was lower on a year-on-year basis, due to the mining constraints associated with the forestry boundary. Rainfall also had an impact on year on year production shortfalls with Q1 2008 having lower rainfall than Q1 2009.

The mine is developing a highwall for mud stabilisation to enable access to reserves pending the boundary decision. The project is progressing satisfactorily. The mining methods that have been deployed as a result have meant that costs at Sebuku have risen over 2008 levels.

Jembayan Coal Mine, East Kalimantan
Straits Asia Resources Ltd (SGX:-SAR) -100%

Jembayan performed well for the reporting period, increasing its production on a year-on-year basis.

Total production from the mine for the March quarter was 1,251 kt with 1,249 kt of coal sold.

A reduction in fuel prices since Q3 2008 has helped the mine to maintain its costs at around 2008 levels, the benefit being offset by higher contractor costs and a slightly higher strip ratio.

The drilling programme continues and results will be announced at appropriate times.

EXPLORATION
Straits Asia Resources (SARL)

During the March quarter exploration activities undertaken by SARL have focused at the Sebuku and Jembayan mine sites.

At sebuku, exploration activities have continued to focus on defining resources below the kanibungan pit and in the Sebuku Strait. Drilling in the Sebuku Strait continues to confirm numbers and thickness 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. Progressive updates of resources and reserve for Jembayan will be released when appropriate. (end of excerpt)

		Quarter ended 31 March 2009	Quarter ended 31 December 2008	Calendar year to Dec. 2008
Sebuku Coal Mine
Coal mined	t'000	648	900	4,225
Product coal	t'000	531	720	3,531
Sales	t'000	403	745	3,607
Jembayan Coal Mine
Coal mined	t'000	1,251	1,333	5,015
Product	t'000	1,232	1,316	5,055
Sales	t'000	1,249	1,356	4,985