Sebuku produced 505,000 tonnes of thermal coal for the June quarter, 52.54% down year-on-year due to the provincial South Kalimantan government review on the mine’s forest boundary.
Constrained operations meant cash costs were also higher than usual for the mine, at $US33 per tonne.
Offsetting most of the lost production from Sebuku, the Jembayan thermal coal mine produced 1.52 million tonnes for the June quarter, up 28% year-on-year, at cash costs of less than $40/t.
At the end of June, Straits said it had commissioned expanded infrastructure which had doubled the mine’s nominal capacity from 5.5Mt per annum to 11Mtpa.
“In line with the new capacity increase, additional equipment has been mobilised to site by the mining contractor, additional coal barges have been engaged and the new coal transhipment crane, the Straits Phoenix, has been in regular service since mid-June,” the company said.
Straits expects Jembayan to see a strong increase in output and be the main contributor to its 9Mt total production target for this calendar year.
Exploration has also ramped up at the mine, with 15 rigs engaged in a drilling program to continue for at least the next nine months.
Total coal sales were 2.1Mt for the June quarter, 60,000t less than the corresponding period last year.
Net profit after tax for the quarter reached $21.43 million, a 43% fall year-on-year, largely due to $14 million in costs for warrants expensed during the period.
Straits will pay a second interim tax-exempt cash dividend for the recent financial year of US1.14c, payable on September 24.
Shares in Straits closed down A2c yesterday to $2.30.
