INTERVIEW-Turkey's Oyak eyes mine,investment despite steel slump

* Conglomerate seeks mine acquisition by end of 2009

* CEO says plans to invest $60 million in Erdemir plant

(Refiles to clarify in paragraph five that company plans $60 million investment)

By Melis Senerdem

MARDIN, Turkey, June 14 (Reuters) - Turkish conglomerate Oyak hopes to sign a deal before the end of 2009 to acquire a coal mine abroad and is planning a $60 million investment in major steel maker Erdemir (EREGL.IS), Chief Executive Coskun Ulusoy said.

Growth in the Turkish steel market has slowed due to a slump in demand amid the global economic crisis, but Ulusoy told Reuters the acquisition of upstream coal properties to supply Erdemir was part of the group's long-term "strategic investment" for when the industry picks up.

"Sometimes you need to secure your supply at reasonable prices. I don't intend to supply 100 percent of our coal from there, but at least a portion of it. So we're looking for a coke mine that will cover our needs, we are not intending to become a major supplier," he said in an interview over the weekend.

He did not provide more details about the mine, but Ulusoy has said the group was looking to invest outside Turkey in areas including the United States and Western Europe, with sectors such as logistics and energy on the shopping list.

In addition to the acquisition of the mine, Oyak, the pension fund for Turkey's armed forces, plans to invest $60 million in the Iskenderun plant for long steel, used for construction.

Unlike previous investments in Erdemir, the $60 million spending might be financed through Oyak assets, he said.

Output at Iskenderun is 6 million tonnes. Only one out of three furnaces is operating and profitability is low, he said.

Erdemir, Turkey's biggest steelmaker, posted a first quarter loss of $89 million due to low steel prices and low global demand.

The Turkish economy is suffering a sharp slowdown, with gross domestic product shrinking 6.2 percent in the fourth quarter as domestic and export demand dries up.

The International Monetary Fund expects Turkey's economy to shrink 5.1 percent this year, after growing 5.9 percent between 2002-2008.

With assets of $8 billion and interests spanning steel, autos, manufacturing, cement and transport, Oyak is one of Turkey's three largest conglomerates.