By Kim Hyun-cheol
Staff Reporter

The state-run Korea Electric Power Corp. (KEPCO) will make a strong push for mergers and acquisitions (M&A) of overseas miners of uranium and soft coal by 2012.

The nation's No. 1 energy firm said in a report Wednesday it plans to lift the rate of independent development of its power-generating fuels from 9.7 percent this year to 16 percent in 2012.

The plan will start next year by taking over shares of a U.S. soft coal mine and a Namibian uranium mine, as well as proceeding with additional M&A of overseas mining companies. The 2010 target includes the establishment of strategic ties with a global mining tycoon, Rio Tinto of Australia.

It plans to expand its overseas business to 13 countries in 2012, and also tap into the trade market for uranium and soft coal, it added. In the same year, KEPCO will look to lay the foundation for a joint electricity project with Russia, as part of preparations to emerge as a power hub in East Asia.

Overseas projects should be actively maintained because the domestic energy market is waning, while demand from industrializing countries is steadily rising, according to the report. Back in June, the utility firm acquired a 17-percent stake in Denison Mines, the world's 10th-largest uranium mining company.

With the deal, KEPCO has secured 20 percent of Denison's annual production until 2015. The overall amount, assessed to be 300 tons per year, accounts for some 8 percent of South Korea's annual consumption.

In the domestic market, the energy giant plans to raise some electricity prices in 2011 to narrow the gap between prices.

Charging systems for electric vehicles, which are expected to be commercialized here within several years, will be set up by the company next year. Also, a pilot program for a new sliding-scale rating system for electricity will be launched in 2011, KEPCO said.

hckim@koreatimes.co.kr