Straits sees lower 2009 coal production from S. Kalimantan mine

Australian mining firm Straits Resources Limited has projected coal production from its Sebuku coal mine in South Kalimantan to decline to 2.0-2.5 million tons for this year from 3.5 million tons last year.

?Production constrained as awaiting Cagar Alam (CA) approval,? Straits said in the investor presentation material released on Wednesday to Australian bourse.

Meanwhile, production from its Jembayan Muara Bara coal mine in East Kalimantan is targeted to increase to 7.0-7.5 million tons this year from 5.1 million tons in 2008, it said.

The company said that this year?s coal production will reach about 9.0-9.5 million tons.

In a presentation released on Feb. 24, 2009, the company said the Jembayan Muara Bara mine will have an installed capacity of 11 MTPA starting the second quarter of this year. The mine will have a crushing capacity of 11MTPA, barge loading conveyors with capacity of 15MTPA and 300,000 tons port stock pile.

The mine, which currently has marketable reserves of 112 MT, produced 5 million tons of coal in 2008.

?Production is expected to improve further in 2009 as more equipment is added to the fleet and more coal is exposed and mined in the pits,? the company said.

The company also said installed capacity of its Sebuku mine in South Kalimantan would be raised to 8 MTPA starting the first half of this year with the installation of a duplicate coal processing plant and associated infrastructure. (denny)