DoE appeals to South Cotabato LGU anew
MANILA, Philippines—The open-pit mining ban imposed by the provincial government of South Cotabato will derail the construction of crucial coal-fired power plants in Mindanao designed to deliver 750 megawatts in additional and reliable capacity to the Mindanao grid over the next 25 years.
In a recent briefing, Energy Secretary Jose Rene D. Almendras noted that the 750 MW in generating capacity could be fueled by the huge volume of proven, minable reserves of just one site in South Cotabato.
While he did not identify the company directly affected by the ban, the Department of Energy (DoE) has reported that the reserves capable of generating this capacity could be found in three coal mines in the province that were acquired last year by diversifying conglomerate San Miguel Corp.
According to the DoE, the 70 million metric tons in proven coal reserves in Lake Sebu were covered by the coal operating contracts held by Daguma Agro-Minerals Inc., Sultan Energy Philippines Corp. and Bonanza Energy Resources Inc. for development and production.
San Miguel bought the coal mines held by the three companies in a bid to further boost the company’s planned power portfolio in Mindanao.
Despite the open-pit mining ban, San Miguel president Ramon S. Ang confirmed in a text message that the company would still consider putting up a coal-fired power plant in South Cotabato.
“I told [officials of South Cotabato] that we would really like to see this project push through and I hope they would reconsider,” Almendras said.
Almendras pointed out that the 750 MW in additional capacity to be generated, coupled by several more proposed coal projects on the island, would more than secure the power supply in Mindanao over the next 10 years, particularly in light of an expected growth in demand. The Mindanao grid registers 1,100 MW in peak demand.
The DoE’s insistence for coal-fired generation was meant to prevent a repeat of the scenario last year when rotating brownouts lasting five to 10 hours plagued the island. The prolonged drought nearly dried up the dams and water reservoirs that power the hydroelectric complexes in Mindanao. Roughly half of the electricity in Mindanao is still generated from hydro resources.
According to Almendras, the DoE even offered a model that would allow those opposing open pit mining to become “compliance auditors.”
“I told them that you can become the compliance auditor, as what we did in Isabela, in which the oppositors themselves will sit in the compliance review board to [ensure compliance]. The compliance oversight [committee] has the right to shut down the plant,” he explained.
In a recent briefing, Energy Secretary Jose Rene D. Almendras noted that the 750 MW in generating capacity could be fueled by the huge volume of proven, minable reserves of just one site in South Cotabato.
While he did not identify the company directly affected by the ban, the Department of Energy (DoE) has reported that the reserves capable of generating this capacity could be found in three coal mines in the province that were acquired last year by diversifying conglomerate San Miguel Corp.
According to the DoE, the 70 million metric tons in proven coal reserves in Lake Sebu were covered by the coal operating contracts held by Daguma Agro-Minerals Inc., Sultan Energy Philippines Corp. and Bonanza Energy Resources Inc. for development and production.
San Miguel bought the coal mines held by the three companies in a bid to further boost the company’s planned power portfolio in Mindanao.
Despite the open-pit mining ban, San Miguel president Ramon S. Ang confirmed in a text message that the company would still consider putting up a coal-fired power plant in South Cotabato.
“I told [officials of South Cotabato] that we would really like to see this project push through and I hope they would reconsider,” Almendras said.
Almendras pointed out that the 750 MW in additional capacity to be generated, coupled by several more proposed coal projects on the island, would more than secure the power supply in Mindanao over the next 10 years, particularly in light of an expected growth in demand. The Mindanao grid registers 1,100 MW in peak demand.
The DoE’s insistence for coal-fired generation was meant to prevent a repeat of the scenario last year when rotating brownouts lasting five to 10 hours plagued the island. The prolonged drought nearly dried up the dams and water reservoirs that power the hydroelectric complexes in Mindanao. Roughly half of the electricity in Mindanao is still generated from hydro resources.
According to Almendras, the DoE even offered a model that would allow those opposing open pit mining to become “compliance auditors.”
“I told them that you can become the compliance auditor, as what we did in Isabela, in which the oppositors themselves will sit in the compliance review board to [ensure compliance]. The compliance oversight [committee] has the right to shut down the plant,” he explained.
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