Straits says on track to produce 4MTPA of coal from Kalimantan mine

Australian mining firm Straits Resources Limited reported on Thursday first quarter production of its Sebuku coalmine in South Kalimantan reached 834,000 tonnes, with sales amounting to 851,000 tonnes. Sebuku produced and sold 850,000 tonnes and 880,000 tonnes of coal, respectively in the previous year’s corresponding quarter.

The company said the figures were in line with target and put the mine on track to meet 2007 production target of 4 million tonnes.

The company said Sebuku is planning to increase output capacity to 6 MTPA through the construction of 3MTPA coal preparation module with completion target of the first quarter of 2008.

Sebuku is expected to have higher stripping waste ratio while the mine’s capacity being expanded but would be compensated by lower fuel costs. The company said a number of initiatives to further cut costs including introduction of drilling and blasting to improve excavation productivity and introduction of larger capacity excavators. (denny)