Wet weather that forced Straits Asia Resources to declare force majeure in respect of coal deliveries from Sebuku mine adversely affected the company"s third quarter profits.

Despite the weather problems, Sebuku mine still achieved 718,000 tonnes of production, up from 623,000 tonnes in the previous quarter mainly due to favourable conditions in September.

Straits Asia also ceased marketing copper for its parent company during the quarter, which was one of the main causes for a drop in turnover from US$69.1 million to US$ 50.9 million.

Straits Asia CEO Richard Ong says: "Obviously we were unhappy that we had force majeure for the first time in our history. As regards future bad weather conditions, we have invested significantly in additional pumping equipment, engaged water flow experts and taken over the pit de-watering from our contractor.

"We have put the events of July and August behind us quickly and I am pleased to say that production was back to normal levels during September. October was also a good month for production.

"We are beginning to lock in 2008 prices at record levels, which gives me tremendous confidence for our future."

www.straitsasia.com