Production and profit drops at Sebuku

STRAITS Asia Resources' Sebuku coal mine is anticipating a strong recovery after declaring force majeure in July this year following heavy rainfalls.

Staff Reporter

Parent company Straits Resources announced a substantial drop in profits after tax to $A13.3 million, compared to $44.3 million for the 2006 fiscal year.

The company struggled with operations at both its Tritton Copper project in New South Wales and Sebuku mine in Indonesia and is yet to bring its Hillgrove antimony, gold and tungsten mine online, which is anticipated by the end of the 2007 calendar year.

Sebuku, currently under expansion, produced 1.5 million tonnes of coal and is expected to finish off the 2007 year with 3.4-3.6Mt.

Expansion operations will increase targets to 5Mt in 2008 and 6Mt the year after.

Straits Resources declared earnings before interest, tax, depreciation and amortisation of $22.9 million, down from $87.9 million, attributing the drop to a fall in revenue and a 36% increase in cash costs at the Tritton operation.

Straits Resources declared an unfranked interim dividend of 3c per share.

This morning Straits Asia Resources announced force majeure has been lifted at Sebuku, weeks after being declared on July 30.

Shiploading at the mine will recommence in September with the first vessel scheduled to arrive on September 1.

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