Straits Resources mulls divesting coal unit

Australian mining firm Singapore Straits Resources Limited said on Thursday it had received offers form several parties to sell its 47 percent stake in SGX-listed coal miner Straits Asia Resources and the company would conduct ?strategic review? in relation to the offers.

?There is no assurance that the completion of the strategic review will result in a specific transaction or proposal. Straits Asia and Straits Resources will keep shareholders informed of all material developments during this period and there is no need for shareholders to take any action in relation to this announcement at this point in time,? the company said.

Macquarie Capital Advisers and Standard Chartered Bank have been appointed to advise the company.

?In closing, the Board of Straits Asia notes that following the recently successful refinancing of debt facilities the Company?s financial position remains sound. Further, the Company?s coal producing operations are performing to plan and the Company continues to benefit from its coal offtake agreements which are generally set at favorable prices with premium customers,? it said.

Straits Asia produces coal from its two mines in Kalimantan, namely Sebuku in South Kalimantan and Jembayan in East Kalimantan. The mines are expected to produce up to 8 million tonnes this year. (denny)