Thursday, June 7, 2012

Atlas unit inks deal with Toledo Power

By Zinnia B. Dela Peña (The Philippine Star) Updated June 07, 2012 12:00 AM
MANILA, Philippines - Carmen Copper Corp., a wholly-owned subsidiary of Atlas Consolidated Mining & Development Corp. which operates the Toledo copper mine in Cebu has signed a 12-year electric power purchase agreement with Toledo Power Co. has (TPC).
Under the agreement, TPC will build and operate a 72-megawatt clean coal-fired power plant in Toledo City to supply up to 60 MW of power to CCC’s mining operations upon its commissioning, expected by end-December 2014.
The agreement was aimed at meeting the projected increase in CCC’s power requirements as a result of the intended expansion of its production capacity from 40,000 tons of copper ore per day to 60,000 tons per day.
CCC and TPC likewise signed an energy conversion agreement whereby the former shall supply to TPC the coal needed to generate the electric power required by CCC. This deal is expected to reduce CCC’s power procurement cost by P0.35 per kilowatt-hour (kwh).
Such cost is seen to drop further by P0.30 per kwh when the plant comes online.
CCC produced a record 7.35 million pounds of payable copper in March and increased its production rate during the first quarter of the year by 21 percent.
Following its successful $300 million bond issue, CCC is gearing up for the expansion of its operations by enhancing production efficiency and by developing the commercial value of its copper processing by-products.
It aims to raise its production by 50 percent to 60,000 tons per day by 2014 from the current average rate of 40,000 tons per day.
CCC also expects to sell this year a total of 80 million pounds of copper metal, 12 million pounds more than what it sold in 2011.    source

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