PNOC-EC mulls coal deal with Indonesian firm
27/Aug/2008 Intellasia | Philippine Star
Aug 27, 2008 - 7:00:00 AM
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PNOC-Exploration Corp., the oil and gas subsidiary of state-owned Philippine National Oil Co (PNOC), plans to enter into a coal contract with Indonesia-based PT VS Mining Resources Inc.
Publicly-listed PNOC-EC informed the Philippine Stock Exchange that it is in the process of firming up the deal with PT VS
"Finalisation of the heads of agreement between PNOC-EC and PT VSMR are currently ongoing," the company said.
PT VSMR is a subsidiary company of VS Industry Berhad. The coal mining company owns a coal mine in Batulicin, South Kalimantan.
The mines have a concession area with total exploration area of 3.536 hectares. Coal deposit in the area is estimated at 25 million metric tonnes.
Earlier, PNOC-EC said they plan to enter into the coal mining business in Indonesia in order to ensure a stable and competitive supply of coal for the Philippine market.
Indonesia is currently one of the world's biggest coal suppliers. It has the fourth largest coal reserves in Asia Pacific, next to Australia, India and China.
In 2007, PNOC-EC visited Indonesian coal mines to conduct geologic surveys. It sent draft memorandum of agreements to PT Sumber Kurnia Buana for the conduct of due diligence in the offered coal mines.
PNOC-EC also completed the preliminary evaluation of Indonesian coal mine concessions PT Berkat Banua Inti, PT Senajaya Energimas Mulia, PT Antang Gunung Meratus, PT Bangun Banua Persada and PT Satui Bara Tama.
The laboratory analyses of all Indonesian coal samples were conducted in PNOC-EC's Malangas and Naga coal laboratories.
The firm operates coal operating contract (COC) 41 within the Malangas coal reservation in Zamboanga Sibugay.
It is also holder of COC 122 covering portions of Cauayan, Naguilian and Benito in Isabela.
COC 122 involves the construction of a 50-megawatt power plant and coal mining operation where low ranked coal will be utilised.
PNOC-EC is also holder of COC 140 in Tago, Surigao del Sur. The COC allows the company to conduct exploration activities in the area which has estimated reserves of about 2.8 million tonnes.
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