SMC planning to buy more coal mines
MANILA, Philippines—Diversifying conglomerate San Miguel Corp. plans to acquire more coal mines in the country, while it awaits developments in the negotiations for its acquisition of Indonesian coal mines.
According to San Miguel president Ramon S. Ang, the company is pushing through with its plans in Indonesia, as the potential coal sites in that country are said to contain up to 500 million tons in resources per area.
In the meantime, Ang said San Miguel would join the government bidding for coal mines under the Philippine Energy Contracting Round (PECR).
The Department of Energy said it would likely bid out at least three contracts to explore and develop coal areas in Argao, Cebu; Bislig, Surigao del Sur; and Siocon, Zamboanga del Norte.
Acquiring new coal areas would help San Miguel build its planned 3,000-megawatt power portfolio within the next six years.
Ang said the company was targeting to begin this year the construction of some of its proposed coal-fired facilities in Mindanao.
In particular, Ang explained, the company would already start studying the logistics and infrastructure requirements for these coal facilities.
Ang said the company planned to initially put up a 300-MW mine-mouth coal power plant in General Santos City following the acquisition of a coal mine in the province. A 300-MW coal facility would need about 750,000 tons of coal a year.
Although he did not reveal San Miguel’s planned investment in the facility, Ang said the conglomerate would invest as much as $1 million to produce one megawatt of power from coal resources. This meant that for the initial 300-MW project, San Miguel would need to invest some $300 million or roughly P13.5 billion.
San Miguel acquired last year three coal mines in South Cotabato and Sultan Kudarat with resources capable of generating an initial 1,200 MW. These were previously owned by Daguma Agro Minerals Inc., Bonanza Energy Resources Inc. and Sultan Energy Mining and Development Corp.
