San Miguel still keen on coal mines
MANILA, Philippines—San Miguel Corp. remains keen on developing its three coal mines in South Cotabato despite news of recent attacks on several mining sites by communist rebels on the island and the continued implementation of the open pit mining ban in the province.
San Miguel president Ramon S. Ang also confirmed, through a mobile text message, that the company was likely to hold on to those prospective coal mines, which were earlier estimated to contain at least 70 million metric tons in proven coal reserves.
The proven reserves alone—found in the mines previously owned by Daguma Agro-Minerals Inc., Sultan Energy Philippines Corp. and Bonanza Energy Resources Inc.—are capable of powering coal-fired facilities that can generate 750 megawatts over the next 25 years.
Despite the difficulties faced by mining companies, Ang said San Miguel was still looking for opportunities in the coal mining sector as this remained a good business venture.
San Miguel had bought the three coal mines in South Cotabato last year to help provide fuel sources for its planned coal-fired power plants in Mindanao. The construction of the power facilities are in line with the conglomerate’s proposed 3,000-MW power portfolio, which it plans to implement over the next six years.
Originally, the company wanted to put up a 300-MW mine-mouth coal power plant in General Santos City following its acquisition of Daguma’s coal mine. A 300-MW coal facility would need about 750,000 tons of coal a year.
However, the provincial government’s imposition of a ban on open pit mining, a method that requires the blasting of entire hills to open access to mineral deposits, has temporarily put on hold such plan and will only be reconsidered until conditions improve in the future.
Instead, San Miguel has set its sights on building a 600-MW coal-fed facility in Davao del Sur. The conglomerate has already made known to the state-run National Grid Corp. of the Philippines, operator of the country’s transmission network, its intent to put up the power plant and has sought the necessary adjustments that would allow it to transmit power to the electric cooperatives and distribution utilities in Mindanao.
San Miguel is the biggest power player in the country with an installed capacity of 3,148.48 MW. This may decrease as the company is now in the process of selling the 620-MW combined cycle facility in Limay, Bataan.
