Straits Asia Indonesian mine coal loader collapses

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SINGAPORE | Thu Oct 8, 2009 8:20am EDT

SINGAPORE Oct 8 (Reuters) - Singapore-listed coal miner, Straits Asia Resources STRL.SI, said on Thursday the new coal loading facility at its Jembayan mine in Indonesia's East Kalimantan province has collapsed due to heavy rain.

The company did not say whether there were any casualties.

Straits Asia said it is investigating the extent of damage and the potential impact on the future operation of the newly commissioned facility. It said the facility will not be able to load its coal output for "some time".

Straits Asia blamed the collapse on several days of rain in the area which caused erosion and failure of the foundation structure of the facility.

The company said Jembayan mine site operates 2 load out trains at the mine, and the old facility, with a nominal annual capacity of 5.5 million tonnes, "does not appear to be affected by this event."

"All other mining activities at Jembayan continue to function normally and all reasonable steps are being undertaken to mitigate the impact of this event," the company said in a statement to the stock exchange.

Straits Asia, which exports most of its output to power plants in Japan, Korea, Taiwan and India, plans to boost its production from its two coal mines in East Kalimantan province to 9.5 million tonnes in 2009, from 8.6 million tonnes last year. (Reporting by Harry Suhartono, Editing by Hans Peters)

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