PNOC-EC to start Indonesian coal production by 2009

PNOC-Exploration Corp. start producing coal from Indonesia and start supplying the coal requirements of two local plants by 2009, official company documents showed.

The coal trading and marketing goals laid out by PNOC-EC indicated it could produce some 1.5 million tons per year from a mine in Indonesia by 2009 to be able to supply the needs of Mirant Philippines and the Kepco-Salcon coal-fired power facilities.

Supplying the coal requirements of local power plants is consistent with the company’s goal to increase its market share of coal supply to 50 percent of total demand in the country.

PNOC-EC also plans to produce about one million tons per year from the Kalimantan mine to supply the needs of cement plants and other power plants.

The company said these endeavors would likely generate a net income of P600 million for 2009.

On the local front, PNOC-EC expects to produce 550,000 metric tons (MT) per year from its coal operating contract (COC) 41 in Zamboanga Sibugay.

For its Isabela coal project covered by COC 122, it expects to produce 510,000 MT per year.

For the Surigao coal mine project, the company sees it to be 50 percent completed by 2009. PNOC-EC is also planning to operate a 50-megawatt power plant for this mine-mouth power facility. The company is currently in talks with potential local and foreign partners for a possible joint venture to put up the coal-fired facility.

PNOC-EC is the publicly-listed oil and gas exploration subsidiary of state-owned Philippine National Oil Co. (PNOC). Its initial foray into coal ventures started in 1997 with the operation of COC 122 in Cauayan, Isabela.

In early 2002, it took the operations of PNOC-Coal Corp. which include coal exploration and mining, as well as integrated coal services and trading.

As a result, PNOC-EC now produces and imports coal and supplies coal to local power and cement industries.

Current field operations of PNOC-EC include coal mine development and production in the Integrated Little Baguio Project and coal exploration in the Lalat and Lumbog areas, both in Zamboanga Sibugay province under COC 41. Coal exploration is also being planned in Surigao del Sur and South Cotabato.

PNOC-EC’s integrated services cover coal handling and operation of coal laboratories. The company now operates four coal terminals in various parts of the country: Malangas in Zamboanga Sibugay, Naga in Cebu, Bauan in Batangas and Poro Point in La Union.

Its present customers include cement plants in Batangas (Fortune); Cebu (Apo/Grand); La Union (Northern) and Surigao (Pacific) and power plants in Quezon (Pagbilao); and Cebu (Napocor-Naga and Atlas-Toledo).