Coal Asia allots $80M for M'danao mines
MANILA, Philippines - Coal Asia Holdings, owner of the nation’s second biggest proven coal reserves, has earmarked $80 million over the next three to four years for the development of its mines in Davao Oriental and Zamboanga, Sibugay, which are believed to contain potential coal resources of 120 million metric tons.
During the company’s investor briefing yesterday, Coal Asia’s financial adviser Vicente Arana said the company is looking to produce an initial 600,000 MT annually beginning 2014.
He said the firm is eyeing net earnings of P500 million by 2014 with the expected commercial operations of the Davao mine.
Last year, Coal Asia posted a net profit of P4.91 million, more than double the P2.03 million reported in 2010 on the back of a 63 percent jump in sales to P21.84 million.
The company is in talks with major players in the power industry such as Aboitiz Power, Manila Electric Co., Team Energy, DMCI Holdings, San Miguel, Ayala Corp. and the Alcantara Group for potential coal supply of their power plants.
In the cement sector, Coal Asia held negotiations with Holcim, Cemex and Lafarge.
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