Beyond power generation, the energy arm of San Miguel Corporation is similarly into expansion binge on its coal mining foray, with plans to acquire more concession areas along Mindanao prospects.

Mr Ramon S Ang president of SMC disclosed that they already opened negotiations with coal developer Sultan Mining and Energy Development Corporation for possible equity take in the latter’s coal block. If anything is firmed up, this will significantly build up the coal exploration and development venture that SMC has just entered into this is following its recent acquisition of the Daguma coal mine in General Santos City.

Mr Ang said that “We will buy concession from proximate areas. All available coal blocks nearby, if they will sell, we will be interested.”

Sultan Mining is currently ramping up production as it already committed some of its long term output to power projects like the 200 MW Naga plant expansion being undertaken by the JV of Korea Electric Power Corporation and SPC Power Corporation.

Mr Ang said that “We already started talks with neighboring coal concessions. We have on going discussions with them.”

For the Daguma acquisition, SMC is looking forward to a very viable production which may hit as much as 800 million tonnes, enough to run 2,000 MW mine mouth power facility over its life cycle.

Mr Ang said that the initial development plan for its acquisition from Daguma Agro Minerals will be to underpin an initial 150 MW to 300 MW mine mouth power plant project that is currently being finalized in the company’s investment blueprint.

(Sourced from www.mb.com.ph)