Shares of Singapore-listed coal miner Straits Asia Resources (STRL.SI) jumped as much as 9.8% to a 41-month high after it got a license, which would lead to new coal mining rights in Indonesia.

At 9:19 a.m., Straits Asia shares were up 6.4% at S$2.81, with over 9.1 million shares changing hands.

 

“The licence brings them one step closer towards attaining full mining rights in the area and is positive for them. They are one of the few foreign-owned entities that are allowed to mine for coal in Indonesia,” said a local trader.

 

Straits Asia said on Tuesday it had received a principle licence for the northern leases at the Sebuku mines in Indonesia. 

 

The principle licence is the precursor to a borrow and use licence that will give Straits Asia the rights to extract coal in the mines, the company said in a statement.