The Energy Department said over the weekend that major coal mining and power projects may be derailed in South Cotabato if the province does not lift the ban on open pit mining.
Mr Jose Rene Almendras energy secretary of Philippines said that South Cotabato's position against open pit mining and coal mines would affect pipeline projects that could secure Mindanao's future energy needs and reduce its dependence on hydroelectric power.
He added that "The province of South Cotabato banned the mining of that coal area. That's my problem. It’s not potential, that’s the proven reserves of that area, just that site alone is equivalent to 750 megawatts for 25 years. You can put a mouth of mine coal plant there."
Mr Almendras was referring to coal mine sites near Lake Sebu in South Cotabato, whose deposits are enough to fuel power plants with a combined capacity of 750 MWs over the next 25 years.
Mr Almendras said that while the provincial board was open to coal mining, the social action center of the Catholic Church was very vehemently against it.
Mr Almendras said that Mindanao had a power generation capacity of 1,100 MW while another 300 MW plant was under construction. Aboitiz Power Corporation also plans to put up another 300 MW plant in Davao City. He added that "Add the 750 MW, double their capacity, so we have enough power for Mindanao for the next 10 years."
San Miguel Corporation owns three coal mines in South Cotabato but president Mr Ramon Ang said the company was bent on pursuing the projects. He added that "We still plan to build in South Cotabato."
Mr Ang said last year that the company can do underground mining or resort to other ways if South Cotabato province was not amenable to open pit mining.
San Miguel’s three coal operating contracts in South Cotabato are held by Daguma Agro Minerals Inc, Sultan Energy Philippines Corporation and Bonanza Energy Resources Inc, which the food and drinks company all bought.
Total mineable reserve at the coal mine site at Barangay Ned, Lake Sebu, South Cotabato is approximately placed at 70 million tonnes, which can support a mine mouth power plant with an estimated capacity of 740 MW for 25 years.
(Sourced from Manila Standard Today)
