Straits Asia Resources says Indonesia’s Ministry of Forestry has issued a Principle Licence (Izin Prinsip) for the Northern Leases at Sebuku in South Kalimantan.

The Izin Prinsip is the precursor to the Izin Pinjam Pakai (Borrow and Use Licence) and gives the company the rights to extract coal provided certain final conditions are met.

The Izin Prinsip sets out the conditions that need to be fulfilled for mining and exploration to commence in the permitted area.

Straits Asia says the Northern Leases are a key part of the company’s long-term strategy for mining its concessions at Sebuku. The area lies immediately to the North of the mine’s Tanah Putih pit and the same coal seams are continuous into the Northern Leases.

Straits Asia expects to commence work in the Northern Leases once the Borrow and Use Licence is issued, which should lead to the long-awaited ramp-up of production from Sebuku mine.