Gov't eyes P2.4-B investments from new coal exploration deals

MANILA, Philippines - The government expects P2.4 billion worth of fresh investments over the next four years from the Philippine Energy Contracting Round for Coal (PECR-Coal), a top Department of Energy (DOE) official said.

Launched yesterday, PECR-Coal will offer 30 prospective areas for the exploration, development and production of coal.

Energy Undersecretary Jay Layug said they would start the actual bidding/opening of proposals on March 2012.

The government estimates that it could generate P80 million or $20 million per contract which is good for two years and could be extended by another two years.

The 30 areas, with estimated reserves of 2.4 billion metric tons, are: Panukulan, Burdeos and Polilio, Quezon; Calaug, Tagkawayan, and Guinayangan, Quezon; Tagkawayan, Quezon and Del Gallego, Camarines Norte; Rapu-rapu Island, Albay; Bacon, Prieto Diaz and Gubatcon, Sorsogon; Cataingan, Masbate; Calintaan, Rizal, San Jose and Magsaysay, Occidental Mindoro; San Jose and Magsaysay, Occidental Mindoro; Bulalacao, Oriental Mindoro; Calatrava, Negros Occidental;Toledo, Minglanilla and Cebu City, Cebu; Inabanga, Clarin and Sinagbayan, Bohol; Kitcharao, Agusan del Norte; Magsaysay, Misamis Oriental and Carmen, Agusan del Norte; Sibagat, Agusan del Sur and Butuan, Agusan del Norte; Sibagat and Bayugan, Agusan del Sur; Bislig and Lingig, Surigao del Sur; Trento, Agusan del Sur and Lingig, Surigao del Sur; Trento, Agusan del Sur; Nabunturan, Compostela Valley; Terragona, Davao Oriental; Togoloan II and Kapai, Lanao del Sur and Iligan City, Lanao del Norte; Lake Sebu, South Cotabato, Palimbing, Sultan Kudarat, and Maitum, Sarangani; Lake Sebu, South Cotabato; Maitum and Kiamba, Sarangani; Godod, Zamboanga del Norte and Kabasalan, Zamboanga Sibugay; Ipil and Naga, Zamboanga Sibugay; Kabasalan and Diplahan, Zamboanga Sibugay; Buug and Malangas, Zamboanga Sibugay; and Imelda, Malangas and Alicia, Zamboanga Sibugay.

Last year, the country was able to produce 7.2 millionmetric tons of coal compared to 5.17 million MT in 2009.

Energy Secretary Jose Rene Almendras underscored the need to develop the country’s coal resources to supply more coal-fired power plants in the future to bridge power demand.

“The Philippine government continually encourages the private sector to participate in its energy independence program that aims to reduce overdependence on imported fuels. Through intensive exploration, the DOE hopes to find additional reserves to supply the local demand for coal. Coal is primarily used in power generation,” he said.

Before the coal contracting round, the DOE already held biddings for oil and gas exploration which offered 15 areas. 

Almendras said under PECR, investors are assured of a transparent and economically-rewarding contracting round with the availability of an updated database on the country’s prospective coal areas, as well as the expanding internal energy market and attractive fiscal terms.

With the goal of reducing the country’s coal importation, he said, the development of indigenous coal remains a priority thrust for the energy sector.

Indigenous coal is largely sourced from the operations of Semirara Mining Corp. in Antique and the output from its open cast operations.

The balance is provided by the small-scale and medium-scale underground mining operations in the coal-rich provinces of Surigao, Zamboanga Sibugay, Cebu, Negros and Albay.