MANILA, Philippines - Stepping up its diversification efforts, San Miguel Corp., the largest food and beverage conglomerate in Southeast Asia, will participate in the bidding of government’s coal exploration areas, a top company official said.
“Yes, we will bid,” SMC president Ramon Ang saidas he confirmed plans to join the coal bidding rounds of the Department of Energy (DOE).
The DOE is expected to offer a number of coal exploration areas in Cebu, Surigao del Sur and Zamboanga del Norte but there is still no definite timetable for the bidding process.
According to Ang, the company is looking at every opportunity coming their way as it would boost its coal operations.
Aside from local coal prospects, Ang said they are also exploring opportunities in Indonesia.
“We’re looking at either acquisitions or joint venture for Indonesian coal mines,” he said.
SMC owns three local mining firms based in Mindanao which are expected to power up some 1,200 megawatts of electricity in the region.
Ang earlier said it is beefing up its coal mining operations to support its newly-acquired coal-fired power facilities.
He said it would also help assure long-term supply of power in the country, particularly in Mindanao.
SMC won the independent power producer (IPP) contract for the 1,200-MW Sual coal-fired power plant in Pangasinan. As an IPP administrator, it is in charge of procuring the coal requirements of the power facility.
In March 2010, SMC bought 100 percent of the outstanding capital of Daguma Agro Minerals Inc., headed by businessman Ben Guingona.
Daguma Agro owns a coal mine in South Cotabato and Sultan Kudarat, an area known for its rich coal deposits.
SMC likewise purchased shares at Bonanza Energy Resources Inc. which operates the nearby coal concession also in the Daguma area.
SMC also acquired Sultan Energy Philippines Corp. from the group led by businessman Frederick Lu. Sultan’s coal mine is located beside the coal concession areas owned by Daguma Agro and Bonanza Energy.
“We’re in the process of consolidating all the coal mines in the area so that we will be able to know the exact deposit of these coal deposits. Once we know the volume, we can start with the mine mouth (power plant),” Ang said.
SMC is now the biggest power producer in the country, having won big-ticket IPP contracts auctioned off by the government for the past months such as the San Roque hydropower plant, and the Ilijan natural gas power facility and the Soal coal-fired facility.
SMC’s power arm, SMC Energy Corp. also owns and operates the 620-MW Limay diesel power plant in Bataan.