Straits sees production from Western Leases to start in 2012

Singapore Exchange-listed coal miner Straits Asia Resources Limited (SARL) said its ?Western Leases? concession area, which is bordered with its producing Sebuku mine in South Kalimantan, might be able to start production in 2012.

CFO James Carter told Petromindo.Com on Monday that the mine might initially produce 10 million tonnes per annum, ramping up to 20MTPA in ?medium term?.

Carter did not say the investment needed to bring the leases into production.

On December 18, 2008, the company announced scoping study on the leases, which envisaged a significant stand-alone mining operation with a build up in coal production to a capacity of 20 million tons per annum and a 20-year mine life.

According to the company, the estimated capital cost is US$860 million over the mine life.

The company has over the last few years conducted an ongoing exploration program on Western Leases- which has to date resulted in a JORC compliant resource of 296 million tons. The company acquired Western Leases area in October 2007.

Carter said in 2012, SARL might produce 35MTPA from its Indonesian mining operations; 10MTPA from Western Leases, 10MTPA from Sebuku mine and 15MTPA from Jembayan mine, which is located in East Kalimantan.(denny)