DoE signs 5 coal exploration contracts

Source:Manila Bulletin

Nov.20,2009

 

The Philippine government is tugging its way further into exploiting the country’s coal resources, with the Department of Energy (DoE) signing new five coal operating contracts (COCs) with investors.

The deals, which were cornered by three companies, is expected to bring in fresh investments worth P235 million.

The DoE formally announced the awarding of three COCs to Titan Exploration and Development Corporation for prospects in Zamboanga Sibugay; and one contract each for Black Gem Resources & Energy Inc. and Dell Equipment & Construction Corporation for exploration blocks in Davao Oriental and South Cotabato, respectively.

“The awarding of new contracts showed increased interest in the exploration and development of indigenous coal resources in the Philippines,” the energy department noted.

For this year, the DoE reported that it already awarded around 16 COCs to various investor companies based on parameters set forth under the Philippine Energy Contracting Round.

By shoring up investment prospects on indigenous coal exploration and their eventual commercial development, the DoE is expectant of an upbeat outcome as to the country’s quest for long-term energy independence.

Presently, the country depends heavily on importation for its coal requirements, as local production remains marginal until this time.

For power generation purposes, locally-produced coal cannot be fully utilized because they are generally qualified “low-grade” as compared to those being imported.

However, with technology advancements for the next wave of power plant investments, it is hoped that domestic coal utilization will increase in due time.

In fact, for various power plant investments in the pipeline, the use of local coal is already being integrated by developers in their project blueprints.