Production from the Sebuku coal mine reached the targeted 3.5 million tonnes, up from 3Mt in 2005 and coal sales of 3.53Mt were 21% above 2005, and slightly over the forecast of 3.5Mt.

Chief executive David Toms said the group had maintained its position as one of the lowest cost thermal coal producers in the world, despite a new government levy on coal exports (which has now been withdrawn) and the impact of fuel price increases on operating costs.

“The average price for fuel paid and used in the group’s operations in 2006 was approximately 50 percent higher than the average for 2005,” Toms said.

“The group is continuing to investigate and implement cost improvement initiatives as part of its current expansion plans.”

Looking forward, market demand for Straits products is robust and the market outlook for its products is still positive.

“This bodes well for continued expansion of our asset base and profitable growth in 2007 and beyond,” Toms said.

“Straits Asia Resources has paved the way in the minerals and mining sector on the Singapore Exchange, and we are very pleased with the investor and the broader market support since we listed [in November 2006].”

Straits’ commodities marketing division began operations in mid-2005 and contributed $138.9 million in sales revenue and $3.4 million to pre-tax profit.

The division operates through its subsidiary, Straits Global Trading in Singapore, which markets, sells and trades bulk commodities, metal and mineral products, and procures mining plant equipment, consumables and chemical reagents from international suppliers, primarily for companies within the Straits Resources Group.

Straits Asia Resources is primarily engaged in thermal coal mining on Sebuku Island, South Kalimantan, Indonesia through its Indonesian subsidiary company, Bahari Cakrawala Sebuku.