Coal key to Mindanao power supply

Manila Times.net

BY EUAN PAULO C. AÑONUEVO REPORTER

THE Department of Energy (DOE) warned that South Cotabato’s opposition to coal mining and coal-fed power generation could hurt Mindanao’s electricity supply.

Energy Secretary Jose Rene Almendras said over the weekend that proven coal reserves in the said province indicate a 750-megawatt power generating capacity for 25 years.

“As far as we are concerned, we would really like to see this project push through and I hope they would reconsider,” he said.

At present, the country’s second largest island group has roughly a
1,100-megawatt generating capacity. Half of this, however, is from hydroelectric power plants, making the region susceptible to volatile weather conditions.

These hydro facilities, which are the cheapest source of electricity in Mindanao, are also mostly government-owned, discouraging potential investors from putting up conventional power plants that cannot compete on price.

Various companies have proposed to put up coal plants in Mindanao after the region’s power supply dwindled because of a prolonged dry spell last year.

“There is 300 megawatts under construction already [and Aboitiz Power Corp.] just told me they might step up their Davao [coal project] to 300 [megawatts]. Add the 750 megawatts, we have enough power for Mindanao for the next 10 years,” Almendras said.

The DOE chief said that tapping coal reserves to feed power plants in Mindanao would help lower rates as generating companies can cut on transport costs, especially at a time when fuel prices are rising.

Mindanao can also tap barren areas on top of coal reserves such as those found in South Cotabato.

“If you look at the area now, [there are no trees. Why? The] soil [is] coal,” Almendras said, adding that “in some areas coal [is burning] because it’s so near the surface.”

He said these areas could be rehabilitated using current technology.

“If I have to, I will go back again and try to explain again and try to appeal again. It is the provincial board that will have to decide whether they will lift the ban,” he added.

The provincial government of South Cotobato, with the backing of the Social Action Center of the Cathoic Church, is blocking open pit mining in the are at the risk of shunning several big-ticket mineral projects, a number of which are held by food and beverage giant San Miguel Corp. (SMC).

Despite this, SMC “still plan[s] to build [coal projects] in South Cotabato, the conglomerate’s president Ramon Ang said.

He had said that the company could tap technology other than open pit mining to gain the South Cotabato government’s support.

The conglomerate’s three coal operating contracts in South Cotabato are held by Daguma Agro-Minerals, Inc., Sultan Energy Philippines Corp., and Bonanza Energy Resources Inc.

SMC also bought a stake in the $5.9-billion Tampakan copper-gold project in the province late last year.