Global Business plans to buy coal mines in Indonesia

Phillipines-based independent power provider Global Business Power Corp., planned to acquire coal mines in Indonesia to secure part of its supply requirements amid plans to build more power plants.

Global business, a unit of Ty-led GT Capital Holding Inc., eyes between 200 megawatts (MW) to 300 MW of new capacity from coal and hydropower sources in three to five years to increase its portfolio to about 1,000 MW. Its existing capacity of 633 MW mainly comes from coal-fired and diesel power facilities serving the Visayas market.

Global Business Power chief finance officer Jaime Azurin said that the company will invest in coal mining companies ?if an interesting opportunity comes up? but clarified that there are no talks at the moment.

?As you expand capacity, it is important to have a source. It will be good to have your own coal supply ? at least 30 percent [of required supply] - and it?s better if you partly own the company,? he said as quoated by businessmirror.com.ph.

?We are open to looking at Indonesia or the Philippines for acquisitions.?

He said investments will likely be undertaken with a partner with expertise in the sector.

?We are not a mining company so we are not going to do it on our own. It has to be with a strategic partner,? Azurin said. (*)