Of the total 254Mt figure, 20Mt is measured, 151Mt is indicated and 83Mt is inferred.

As the drilling program is continuing, further announcements and upgrades are expected.

The next phase will cover 2700 hectares with 3000ha already explored of the 12,000ha concession.

“The latest information confirms our decision to put the main force of our operational management efforts behind the expansion of Jembayan, which will have installed production capacity of 11 million tonnes per annum in place by mid-2009,” Straits Asia chief executive Richard Ong said.

“We are targeting production in the range of 7 to 8 million tonnes from Jembayan in 2009.

“The coal quality remains consistent with products now being sold from Jembayan and that will help us to establish the Prangat and Jembayan brands and optimise pricing for sales.”

Straits Asia has said the coal from its Prangat and Jembayan mines are known for their very low ash and sulfur content.