Coal production and sales from Straits' main coal mine reached record highs in the final quarter. Production at Sebuku mine in Kalimantan, Indonesia, reached 1.26 million tonnes, 27% higher than the corresponding period in 2006. Coal sales reached 1.4Mt.
Overall, coal production at Sebuku in 2007 was 3.4Mt, about 200,000 tonnes less than the previous year.
This drop in total production could be due to heavy rainfall in the third quarter, which flooded the mine pit and forced Straits to declare force majeure in August.
At the time, Straits said it still hoped to achieve its target of 4Mt in 2007; however that would depend on the mines recovery from the rain.
Despite missing this target, two recent acquisitions mean the future is looking bright for Straits.
In December Straits acquired the Jembayan coal mine in Indonesia. At the time Straits Asia CEO Richard Ong said the mine, which produced 4Mt of coal in 2007, would allow the company to expand its 2008 production target to between 8.5-9.5Mt.
Since then, Straits has also acquired a 35% stake in coal tenements in the Sakoa area of Madagascar.
The Sakoa area contains several coal seams and previous drilling and studies suggest the area has significant resource potential.
