San Miguel eyes coal blocks offered in DoE auction

REUTERS

By Sheldeen Joy Talavera, Reporter

ANG-LED San Miguel Corp. (SMC) is coal areas offered by the federal government, including a mining site currently operated by Semirara Mining and Power Corp. (SMPC).

A source aware of the method told BusinessWorld that representatives from the energy group were present on the pre-submission conference held by the Department of Energy (DoE) on Thursday.

Representatives from San Miguel Global Power Corp., SMC’s power generation arm, and its subsidiary Sual Power, Inc. (SPI) attended the conference.

SPI operates the 1,200-megawatt (MW) coal-fired power plant in Pangasinan, which supplies power to the Luzon grid. The ability has been operating since 1999.

SMC is among the many country’s largest power producers and has a diversified portfolio that features the 600-MW Mariveles plant in Bataan and the greater than 1,000-MW Masinloc plant in Zambales.

The DoE held the conference to deal with bidders’ inquiries and make clear requirements ahead of the submission of proposals.

Under the bidding round, the DoE is offering three pre-determined areas (PDAs) covering 18 coal blocks across about 18,000 hectares. These include 10 blocks in Semirara Island in Caluya, Antique; five blocks within the municipalities of Benito Soliven, Naguilian, and Cauayan in Isabela; and three blocks in Amulung and Iguig in Cagayan.

The deadline for submission of application documents is April 28, when the opening of bids may also happen.

The auction includes blocks covered by a coal operating contract currently held by SMPC, the country’s largest coal producer.

SMPC also attended the conference and is looking for to proceed its mining operations on Semirara Island.

Meralco PowerGen Corp., the facility generation arm of Manila Electric Co., has earlier expressed interest in partnering with SMPC if it participates within the auction.

Through the launch, Energy Undersecretary Alessandro O. Sales reminded prospective bidders to “reveal sound technical capability, strong financial capability, and a reputable plan that puts safety, environmental protection, community development, and progressive rehabilitation at the middle of operations.”

“That is how we uphold responsible resource development while we proceed to strengthen energy security and speed up the long-term transition of the facility sector,” he said.

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