Toledo Power bags supply deal with Carmen Copper

MANILA, Philippines - A subsidiary of tycoon George S.K. Ty’s Global Business Power Corp. has bagged a deal to supply electricity anew to the mining operations of Carmen Copper Corp. (CCC) in Cebu.

“Global Power, through its wholly-owned subsidiary Toledo Power Co., signed an agreement with CCC for the supply of up to 60 megawatts (MW) of electric power beginning Dec. 26, 2014,” the energy firm said in a statement.

Under the deal, Toledo Power will design, engineer, finance and construct a 82-MW clean coal-fired power plant in Toledo City, Cebu.

The expansion of an existing coal plant aims “to supply much needed power to CCC to address the projected increase in [the miner’s] power requirements as a result of the expansion of its mining operations,” Global Power said.

CCC is a subsidiary of listed Atlas Consolidated Mining and Development Corp.

“With the proposed expansion of the Toledo Power facility, Global Power seeks to respond to the projected increase in power demand in the area and provide more efficient energy,” the company said.

It will replace the current coal facility with a power facility that will use a circulating fluidized bed boiler, which is one of the latest, environment-friendly, clean coal technologies available, Global Power said.

To date, Toledo Power operates two power plants: the 60-MW Sangi coal-fired power station and the 40-MW Carmen diesel engine power station.

“This is further to Global Power’s commitment to ensure sufficiency of power supply in the Visayas,” the firm said.

Toledo Power has been in the power generation business for the past 43 years. It was initially put up to serve the electric power requirements of the Toledo Copper mine complex.

When the mines closed in the mid-1990s, Toledo Power was sold to Global Power (formerly Mirant Global Corp.), catering to the power requirements of Cebu City, Toledo City and the Cebu Industrial Park in Balamban, Cebu.

Global Power is a leading independent power producer in the Visayas region with a combined gross dependable capacity of 627 MW, comprising 619.5 MW of power supplied to the Visayas grid and 7.5 MW supplied to Mindoro Island. Its two largest power generation subsidiaries - Panay Energy Development Corp. and Cebu Energy Development Corp. – own power plants with a combined installed capacity of 410 MW.

Global Power’s parent firm, GT Capital Holdings Inc., the flagship company of taipan George Ty, raised P21.6 billion in the country’s largest public offering last April.

CCC, a unit of listed Atlas Consolidated Mining and Development Corporation, has started the production of higher-grade copper ore from its Carmen ore deposit.

In a disclosure to the Philippine Stock Exchange, Atlas said the expansion of its operations was pursued two months ahead of schedule.

Atlas, which operates the Toledo copper mines in Cebu, said the expansion of CCC’s operations from the Lutopan ore deposit “marks a milestone in its drive to enhance its mining efficiencies and optimize its throughput potential.

“As we establish steady production from the Carmen ore body, we will continue to work towards achieving expansion goals through cost reduction measures and process improvements,” said CCC vice president Adrian Ramos.

CCC produced 1.246 million tons of ore in May 2012, up 26.75 percent from 983,000 tons in the same period last year. This resulted in the production of 13, 172 dry metric tons (DMT) of copper concentrate with an average metal grade of 26.64 percent copper, 3.09 grams per ton of gold, and 20.11 grams per ton of silver.

The ore was sourced from the Lutopan pit which is part of the 1,634-hectare Toledo copper mine in Cebu.

Three shipments of 4,892 DMT, 4,939 DMT and 5,173 DMT of copper concentrates were made in May, totaling 15,004 DMT.

The shipped concentrates averaged 26.95 percent copper, 3.07 grams per ton gold and 21.18 grams per ton silver.

The payable metal content of the concentrate was 8,568, 000 pounds copper and 1,351 ounce of gold.

The estimated value of the shipments was $33.66million based on provisional and hedged prices of $3.68 per pound of copper and $1,580 per ounce of gold.