Straits? Sebuku mine produces 1.96 million tons of coal in 2003

Australian mining company Straits Resources Limited reported on Thursday its Sebuku mine in South Kalimantan had recorded coal production and sales of 1.96 million tons and 1.99 in 2003, down from the previously year?s of 2.06 million tons and 2.00 million tons.

Despite the declining performance, Straits is still optimistic and said the new contractor had settled in well and in view of the contractor changeover production from Sebuku during the December quarter was commendable. Sebuku mine produced 510,000 tons in the fourth quarter of 2003, up from 457,000 tons in the previous quarter.

Straits also said that significant cost savings are now occurring as a result of initiatives implemented during 2003 including the contractor changeover.

Straits added that the coal market is currently extremely strong and spot prices have continued to strengthen. ?Increased coal prices coupled with the cost savings discussed above should result in a strong financial performance from Sebuku in 2004,? the company said.

Straits has an 80 percent ownership in PT Bahari Cakrawala Sebuku, which operates the opencut truck and shovel coal mining. The remaining 20 percent stake is held by PT Reyka Wahana Digdjaya. (robert)