DOE to settle issues on mining ban before coal-bid offering: Almendras

Business Mirror
THURSDAY, 03 NOVEMBER 2011 20:13 PAUL ANTHONY A. ISLA / REPORTER


THE Department of Energy (DOE) might have to address mining bans issued by local government units (LGUs) before it could get to auction off coal-operating areas to potential developers.


Energy Undersecretary Jose Layug Jr. told reporters there are issues against mining projects that need to be sorted out by the energy department.


“National laws should not be superseded by any issuance made by any local government units,” the DOE official stressed in a recent interview.


To help address issues against the mining ban, Layug said President Aquino has issued an Executive Order mandating the creation of the Upstream Petroleum Task Force.


Mr. Aquino, according to Layug, created the task force in light of the DOE’s need to address the different directions of LGUs on mining projects.


Layug explained the task force will gather data where all issues on coal, oil and gas exploration will be referred to.


As this developed, Layug also added that they are looking at auctioning off around 15 to 20 coal operating areas to potential developers via the Fourth Philippine Energy Contracting Round scheduled next month.


Layug clarified though that some areas they plan to offer need a clearance from the Department of Environment and Natural Resources (DENR) because of the mining claim. “We have already coordinated with the DENR, but the process is taking some time. But we are still anticipating to bid out around 15 to 20 coal operating areas by December,” he added.


To date, Layug said they are confident that at least 11 areas will be bidded out instead of the earlier five areas announced for bidding.


Among the identified the areas for possible coal exploration and development are in Cebu, Surigao del Sur and Zamboanga del Norte.


Layug earlier said the DOE has decided to defer the bidding of coal-contract areas to December to have more time to thresh out issues in some areas to be bidded out.


He added that they decided to move the bidding to December as they are still awaiting confirmation on some areas to be offered.


Energy Secretary Jose Rene Almendras earlier said the government plans to launch the coal contracting round before the end of the year.


“We’ll be pushing through with the coal bidding. We want to make it a good offering, we have a few areas that are clear from opposition. We’re gunning for an offering round for coal before the end of the year,” Almendras said.