Reuters reported that Indonesian state owned miner, PT Aneka Tambang Tbk is looking at two coal mining firms as possible acquisitions to meet its rapidly rising energy needs.

The company said that last year it planned to acquire coal mines as it expects coal consumption to rise significantly when it completes a new power plant near its nickel mine in Pomalaa, on Sulawesi Island.

Mr Alwin Syah Loebis director of Antam said that "We are focusing on two coal mining firms in East Kalimantan. We are now doing the due diligence. Hopefully, we will have a better picture by the middle of this year.”

Mr Alwin said that the acquisitions would be funded partly by cash.

He said that Antam consumes about 200,000 tonnes of coal a year to power its ferronickel smelters, but annual consumption may rise to 2 million tonnes once the new power plant is completed

The firm said that the USD 350 million coal fired power plant, due to be built as a joint venture with an independent power producer, will have a 150 MW capacity. Construction is due to start in 2010 and take between 18 and 24 months.

Antam, 65% owned by the Indonesian government is involved in the exploration and production of nickel ore, bauxite and iron sands, smelting of ferronickel, as well as the exploration, production and refining of gold and silver.

(Sourced from Reuters)