PLN to acquire two coal mining companies

State-owned electricity company PT Perusahaan Listrik Negara (PLN) plans to acquire two coal mining companies, one in Sumatra and another one in Kalimantan, in order to secure coal supply for the company?s coal-fired power plants, Kompas reported on Friday.

PLN?s president director Fahmi Mochtar said in Jakarta on Thursday that the acquisition would be carried out through the company?s new subsidiary which was being established.

He said that the acquisition is expected to be completed in the end of this year.

Fahmi said that the new subsidiary would have two options -- to take over the concession area and become the mining operator or to set up a joint operation with a coal mining company.

He said that the acquisition of the coal miners would be made to ensure the long-term supply for the company?s coal-fired power plants. He estimates that the company?s coal demand might increase by more than 400 percent in 2011 to 89 million tons from the current level as the result of the increase in the number of its coal-fired power plants. (*)