Banpu to increase coal production, seeking acquisition

IDX-listed coal mining firm PT Indo Tambangraya Megah (ITM), a unit of Thai energy conglomerate Banpu PCL said it would increase coal production for next year.

CFO Edward Manurung told Petromindo.com on Monday that the company will increase production to 23 million tonnes next year from the planned 20.5 tonnes this year.

The company currently operates three producing mines in South and East Kalimantan. Two new mines, namely Kitadin Embalut and Bharinto Ekatama, both are located in East Kalimantan, will start production next year with combined 2010 output of 1 million tonnes.

Meanwhile, Manurung confirmed that ITM is one of the bidders to acquire 90 percent stake at East Kalimantan coal miner PT Berau Coal. ?We hope the result could be announced end of October,? he said. Reports said ITM another IDX-listed mining firm Indika Energy and Quattro Inti Investama are the three surviving bidder to acquire Berau.

Manurung said apart from Berau, ITM is also considering ?other acquisition opportunities.? He did not give detail. (denny)