MINING company Straits Asia Resources is on an expansion trail to more than double its output by 2012.

Amid the economic downturn, the company is close to acquiring a third coal mine in Indonesia, its chief executive Richard Ong told the press on Friday.

The deal is expected to be completed this year and will add 2 million tonnes of production capacity. Mr Ong said that the company is targeting 20 million tonnes of coal output by 2012, up from 9.5 million tonnes this year.

The company currently owns two mines in Sebuku and Jembayan in East Kalimantan, after it acquired the Jembayan mine in 2007.

The two mines will contribute about 18 million tonnes combined, with 10 million tonnes from the Jembayan mine and 8 million from the Sebuku mine. The new mine, near Jembayan, will add 2 million tonnes.

Mr Ong revealed that eight to 10 companies have shown interest in the parent company Straits Resources' 47 per cent stake.

The Australian miner said last December it would undertake a 'strategic review' of its stake, prompting a slew of interest.

Reports have said that commodities firm Noble Group and Indonesian coal miner PT Indika Energy Tbk are among the interested bidders.

However, Mr Ong said that he would oppose a takeover if the bidding company wanted to change management or did not share the same vision for the company.

Mr Ong took over from David Toms in 2007 and abruptly refocused the company's strategy on coal. He co-founded the company in 2004, and served as its chief operating officer until two years ago.