The decision follows considerable success in resource increases at the mine and detailed studies that confirm the favourable economics of the expansion plan.

The expansion will include an upgrade to the coal preparation and handling facilities on the site and an increase to mining rates in the main Tanah Putih pit.

The new facilities have been designed to complement the existing operating base and will not impact on the production targets or current sales plans while they are being constructed.

In February, Straits Asia Resources announced record production, turnover and profits in its first full-year results since listing on the Singapore Exchange, despite higher operating costs.