Straits reports Sebuku coal mine production, operations update
Thursday, July 31 2003 - 05:38 PM WIB
Australian mining firm Straits Resources Limited reported on Thursday coal production from its Sebuku mine in South Kalimantan reached 452,000 tonnes for the June 2003 quarter and sales were 357,000 tonnes. The company produced 448,000 tonnes of coal in last year?s corresponding quarter with sales amounted to 370,000 tonnes
The company said that coal production for the year to date was 997,000 tonnes, in line with forecasts while coal sales were slightly below forecast at 886,000 tonnes.
Sales are expected to improve in the second half of 2003. Coal spot prices remained weak during the quarter, though some improvement is expected in the second half of the year.
A cost reduction programme is proceeding and is expected to have a positive impact on operating results in the second half of 2003.
Exploration and definition drilling continues to define further resources around the Tanah Putih pit, said the company. Four drill rigs are currently employed in reserve definition drilling around Tanah Putih with some regional work. The program is expected to continue into early or mid 2004 but thus far, indications are that the mine life at Sebuku can be extended beyond 2007, and the possibility of another 5 years of operation is looking increasingly likely.
Most of the additional resources have been found in the northern Tanah Putih area, which, up until now, has yielded coal of higher quality than that in the Central Pit area.
Although only a limited amount of core sampling to measure coal quality has been undertaken in the newly discovered coal resources, the samples indicate that the same high quality, low sulphur coal is present. The marketing implications of this are currently under review but in principle, new markets and better prices should be available for this product.
Straits has 80 percent stake in Sebuku mine. (alex)