Antam eyeing coal mining companies

State-owned mining company PT Aneka Tambang (Antam) plans to acquire at least two coal mining companies to supply the company?s power plant in Pomalaa, Southeast Sulawesi, Bisnis Indonesia reported Monday

Antam?s president director Dedi Aditya Sumangera said in Jakarta last week that a number of coal mining projects were currently being assessed for the acquisition plan.

According to him, the acquisition of coal mining firms is part of the company?s long-term business strategy to cope with the escalation of the operating costs resulting from the surge in fuel prices.

He said that the fuel spending contributed about 12 percent of the company?s total production costs, or 33 percent of the cash value of the company?s ferronickel product.

Earlier, Antam's Director of Operations Alwin Syah Loebis said Antam is in the middle of studying various options for fuel as an alternative to oil. The options include building hydro power plant, gas and coal power plants. (*)