Tenaga may sell Indonesian coal unit should the opportunity arises.

Malaysia's utility giant, Tenaga Nasional Bhd (TNB), may just dispose of its problematic unit, TNB Coal International Ltd, should the opportunity arises, agency reported Tuesday.

TNB's chief executive, Datuk Che Khalib Mohd Noh, said the Indonesian coal mining operation was relatively small compared to the company's overall business.

"If the best opportunity arises and we think that it is the best solution, we will dispose of the (mining) company," he told Bernama in an interview.

TNB holds 92.5 percent of TNB Coal, which has coal mining rights in Kalimantan. The rest of the firm is held by the coal mine concession owner, Robert Priantono Bonosusatya.

"If selling is the best option, (we will) sell, eventhough we have to make losses because the amount of losses are (considered) small," said Che Khalib,.

He said the Indonesian outfit was not like TNB's other overseas ventures, which involved substantial amounts of investment.

Che Khalib said the amount of coal that TNB received from its Indonesian coal mine was also small compared to the total amount required for its entire production system.

TNB had initially ventured into coal mining to ensure adequate coal supplies for its power plants, which appeared to be a wise move after coal prices increased following China's heightened demand for the fuel.

He said TNB was still negotiating with its Indonesian partners and contractors and that "we hope we can come up with some amicable solutions."(*)