SMI may tap Alsons Energy for Tampakan’s power needs

Sagittarius Mines Inc. and Alsons Energy Development Corp., a subsidiary of the Alcantara Group, are looking into the possibility of putting up a coal-fired power plant in Sarangani province to meet the electricity requirements of the Tampakan copper and gold project in South Cotabato.

In a joint statement, SMI and Alsons Energy said they had signed an agreement to study the feasibility of putting up the plant, which would have a capacity to generate 240-400 megawatts of power.

Earlier estimates placed the cost of the coal facility at $900 million, or about P38.7 billion.

Under the joint feasibility study, SMI and Alsons Energy will look into the environmental, technical and financial aspects of the prospective power station. The results of the joint study will help SMI make the decision on whether Alsons Energy will be selected as the power-generation supplier for the Tampakan project.

Alsons Energy said it would be undertaking its own technical studies on the facilities needed by SMI.

SMI and Alsons Energy have also agreed that all prospective infrastructure development and operational procedures would be screened through globally accepted environmental standards and best practices, as well as domestic laws and regulations.

Should the two parties push through with the project, the proposed coal facility would be put up within the Kamanga Agro-Industrial Ecozone, which is operated by the Kamanga Agro-Industrial Ecozone Development Corp. (KAIEDC) in Maasim.

The Tampakan Copper-Gold Mine Project in Tampakan, South Cotabato, contains the world’s biggest known copper deposit.