A feature of Sebuku mine is its very low strip ratio, averaging about 5:1 or half the average strip ratio for Indonesia.  Coupled with the efficiencies we have introduced in our mining methods and short haul distances, these combined to rank us in 2006 as the third lowest cost producer of thermal coal in the world (source: Barlow Jonker).

Sebuku Island lies on the most eastern position of south Kalimantan, affording easy access to open, deep water seas and to the major shipping routes in and out of Asia.  The Island’s highest point is only 125 metres with our own mining area defined mainly by marshy swamps and hills ranging from 5 to 25 metres.  Sebuku has a population of about 5,000 people of which over 750 are employed at work in our operations.

Straits Asia’s concessions area totals over 18,000 hectares on the west portion of Sebuku and extending into a shallow sea water basin about 3 to 5 metres deep between Sebuku and the larger neighboring island called Pulau Laut.  Straits Asia has been mining coal at Sebuku since 1997.  The first pit, in southern part of the Island, has been mined out and we now conduct operations in the mid-western part of the Island, currently still on land from a single pit. 

The coal is a multi seam formation and extends generally in a north-westerly direction under the shallow strait.  Coal outcroppings on Pulau Laut and our own drilling in the seabed area suggest that the coal seams that we are mining, or similar formations, extend from Sebuku and onto Pulau Laut.

Sebuku mine produces single burn thermal coal which we sell primarily to Asian and European power utilities.  We intend aggressively to expand production from the resource base on Sebuku.