Straits to complete Jembayan load-out facility construction in Q1 2011

Singapore-listed coal miner Straits Asia Resources Limited said on Wednesday that the reconstruction of the second load-out facility at its Jembayan mine in East Kalimantan is on track for commissioning during first quarter 2011.

The company said in a statement that once commissioned, the new line will bring Jembayan mine?s total installed infrastructure capacity to a nominal 12 million tons per annum (MTPA).

This year, the company plans to produce around 9 million tons of coal, an increase by around 500,000 tons from the initial target of 8.5 million tons. As of September this year, coal output from Jembayan reached 7.1 million tons

The project is expected to cost approximately US$20 million.

In October 2009, the company?s second load-out facilities at Jembayan mine collapsed due to a failure in foundation structure caused by heavy rains.

Before the incident, there were two load-out facilities of similar capacity at the site. The first load-out facility, callled Line 1, which has a nominal capacity of 5.5Mtpa, was not affected by the incident. (denny)