Straits Indo coal output slides

STRAITS Resources subsidiary Straits Asia produced 1.76 million tonnes of coal from its Indonesian thermal coal operations in the March quarter, falling 13.41% from the previous three months, with the Sebuku mine hampered by rain and uncertainty over its forest boundary.
Straits Indo coal output slides Straits Indo coal output slides Straits Indo coal output slides Straits Indo coal output slides Straits Indo coal output slides

Coal mining operations at Straits Resources Sebuku coal mine in Indonesia

Blair Price

Straits said Sebuku was developing a highwall for mud stabilisation to provide access to reserves pending the decision on the operation’s forest boundary.

The mine was 26.25% down in coal production in the three-month period, compared to the December quarter.

Exploration will continue throughout the year with a focus on the Kanibungan pit and in the Sebuku Strait.

By contrast, the company’s Jembayan coal mine was just over 5% down, with Straits still continuing a drilling program at the operation.

Total coal sales from the two mines fell 21.37% to 1.65Mt for the March quarter, compared to the previous three months.

Over at its 35%-owned Madagascan coal project, six holes have been drilled so far in the current exploration program.

Straits said initial indications suggested a washed coal could be produced at 6000kilocalories/kg with 15% ash and less than 1% sulfur.

Straits ended March with a $US315 million cash position.

This will be bolstered by this week’s sale of the company’s 60% stake in Straits Bulk & Industrial to Asian energy major PTT Group for up to $US335 million, with $220 million received up-front.

Shares in Straits Resources are up A1c to $1.53 this morning.

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