The Sebuku coal mine in Indonesia continues to be one of the star performers for Straits Resources with annual production expanding to 6 million tonnes.

In 2006 production increased to 3.5 million tonnes from 3 million in 2005 and the mine is expected to be producing at the expanded rate of 6 million tonnes by next year.

The expansion of Sebuku is underpinned by a coal resource base of 103 million tonnes, a substantial increase on the previous year.

Straits chairman Alan Good told the company's annual general meeting that the stand-out corporate achievement in the previous 12 months was the successful IPO in Singapore of the group's Asian energy interests, principally the Sebuku coal mine.

Straits Asia Resources listed on the Singapore Stock Exchange in November 2006 and today its market capitalization is in excess of US$1billion. Alan Good says the new enterprise is focusing on acquiring and developing mining-related projects to service the Asian region and has tremendous potential for growth.

Straits Resources has four operating mines with another, Hillgrove, under construction and expected to be producing antimony metal and gold by the third quarter of 2007.

Whim Creek is forecast to produce 16,000 tonnes of copper in 2007 and continued success in drilling the sulphides at Whim Creek, including nearby Salt Creek, ensures the longevity of the operation.

After completing a takeover of Tritton Resources in 2006 Straits intends to expand operations and by 2009 Tritton is expected to be producing in excess of 40,000 tonnes/year of copper concentrate.

Mt Muro had its first full year of operation in 2006 producing about 54,000 gold equivalent ounces and this year the mine is forecast to produce about 80,000 gold equivalent ounces.

The Yannarie salt project in north-west WA continues its steady progression through the regulatory approvals process.

Straits has a number of exploration projects throughout Australia including a large land position in the Drummond Basin, Queensland, where the company has made a significant discovery of gold at Yandan. It expects to drill test the Torrens project in South Australia in the next few months and target is a major iron-oxide copper-gold deposit, like Olympic Dam.