Straits Asia Resources (AJ1.SG) last flat at $2.13, off $2.16 earlier high, failing to build on initial momentum fuelled by news of Indonesia-based coal miner's increased coal reserves at its Jembayan mine, says Dow Jones.

While latest coal reserves +21% from end December, Goldman Sachs, which has Sell call with $1.90 target, says increase smaller than expected given substantial rise in drilling activity.

“Meanwhile, SAR did not upgrade the reserves for (its) Sebuku mine...and management does not expect any reserve upgrade for Sebuku until at least end-2011. This may be a source of concern for the market as current reserves in Sebuku are almost depleted,” says Goldman Sachs.

Near-term catalyst remains formal permits, expected by year end, allowing SAR to carry out mining work at new area rezoned by Indonesian authorities located next to its Sebuku mine. Orderbook quotes tip shares to hover near current levels.