INTERVIEW-UPDATE 1-Straits Resources seeks coal acquisitions

* Demerged coal unit to seek acquisitions

* Coal unit targets acquisitions valued at A$1-A$2 bln

* Targets coal output of 50 million tonnes within 5 years (Updates throughout)

By Fayen Wong

PERTH, Aug 14 (Reuters) - Australian miner Straits Resources Ltd (SRL.AX: Quote, Profile, Research) said on Thursday it plans to grow its coal unit through acquisitions, and was targeting deals worth between A$1-A$2 billion ($877 million to $1.75 billion) in Australia.

Straits Resources, which owns 47 percent of Singapore-listed coal miner Straits Asia Resources Ltd (STRL.SI: Quote, Profile, Research), said in April it was splitting its coal and metals businesses into two to improve its growth prospects.

"That's the only size that is relevant," Straits Resources Chief Executive Milan Jerkovic told Reuters in an interview.

"You only do a corporate transaction of this size once every couple of years. So when you go ahead, you have to make sure it's a meaningful acquisition, especially since this is a consolidation phase in the industry," he said.

Jerkovic said Straits Resources was eyeing several Australian coal firms that are already in production and it has already begun talks with some of them.