Indonesian mining contractor, PT Pamapersada Nusantara, plans to acquire a coal mine in East Kalimantan with annual production of 10 million tonnes a year, a company official said on Friday.
PT Pamapersada is owned by Indonesian heavy equipment maker and coal mine contractor PT United Tractors Tbk (UNTR.JK: Quote, Profile, Research).

"We're still in the process of negotiations with the coal firm. It is part of our efforts to expand the business," Afify Djauhari, the firm's engineering director told reporters.

He declined to give a value for the planned acquisition.

Earlier this year, the company bought a coal firm with annual coal output of 3.5 million tonnes a year in an acquisition valued at $90 million.

Indonesia is the world largest exporter of thermal coal and rising coal prices have prompted flurry of investment and acquisition in coal mining.

PT Pamapersada currently provides mining works for 11 coal mining producers including coal firms PT Adaro and PT Kaltim Prima Coal.

This year, the company expects to mine a total of 52 million tonnes of coal on behalf of its 11 coal clients, up from 42 million tonnes in 2006.

Indonesia is expected to produce 196 million tonnes of thermal coal this year with export seen at 147 million tonnes.