SMC keen on pushing Indonesian coal ventures

MANILA, Philippines - To ensure supply for its power facilities, diversifying conglomerate San Miguel Corp. (SMC) is pushing its coal development ventures in Indonesia, a top company official said.

SMC president and CEO Ramon Ang said they are considering the purchase of an Indonesia-based coal mine and partnering with a local coal mining company.

“We’re looking at either acquisitions or joint venture for Indonesian coal mines,” he said.

 SMC currently has three mining firms in Mindanao capable of delivering 1,200 megawatts of electricity in the region. Ang said they plan to put up coal power facilities to secure the country’s long-term power requirements.

SMC is also the independent power producer administrator (IPPA) of the contracts of the 1,200-MW Sual coal-fired power plant. As an IPPA, it is in charge of procuring the coal requirements of the Pangasinan-based coal plant.

San Miguel Energy Inc. (SMEC), the power generation unit of SMC, earlier said it also acquired 100 percent of the outstanding capital of Daguma Agro Minerals Inc. (DAMI), headed by businessman Ben Guingona.

DAMI runs a coal mine in South Cotabato and Sultan Kudarat, areas known for rich coal deposits.

SMC also bought Bonanza Energy Resources Inc., which operates the nearby coal concession also in the Daguma area.

The group also owns a majority stake in Sultan Energy Philippines Corp. after acquiring it from businessman Frederick Lu.

Sultan’s coal mine is located beside the coal concession areas owned by Daguma Agro and Bonanza Energy.

“We have already bought three companies – Daguma, Bonanza, Sultan – 100 percent of the three companies,” Ang said earlier.

He said they would be putting into one arm all its coal-related ventures.

“We’re in the process of consolidating all the coal mines in the area so that we will be able to know the exact deposits of these coal deposits. Once we know the volume, we can start with the mine mouth (power plant),” he said.

SMC likewise signed an agreement with an Indonesian company called Merukh Enterprises in July for an investment of $200 million to finance the development of its coal reserves. The coal areas are located in Aceh, Kalimantan and Papua.