Interest in coal still ripe despite SMI ECC denial

Business World Online
Posted on January 26, 2012 11:26:53 PM


THE RECENTLY launched coal exploration bidding round continues to attract investors despite the denial of Sagittarius Mines, Inc.’s (SMI) environmental compliance certificate (ECC) due to issues relating to open-pit mining, an official from the Energy department said.
The department said investors have not yet indicated any intention to pull out of the bidding.
“So far, we do not see the denial of the environmental compliance certificate as dissuading interested parties in bidding at the [contracting round] for coal,” said Energy Undersecretary Jose M. Layug, Jr. in a text message to BusinessWorld.
He added investors have not indicated any changing interest in the coal contracting round.
The Energy department is offering 30 potential areas for coal resource exploration. Many of the areas are located in Mindanao.
It was launched in December last year.
The Environment department denied SMI’s application for an environmental compliance certificate on Jan. 13 because the issue of a South Cotabato open-pit mining ban is yet to be resolved.
The ban was approved in June 2010.
Sagittarius’ $5.9-billion Tampakan copper-gold project is described as one of the largest underdeveloped sites in Southeast Asia.
An environmental compliance certificate certifies that the project under consideration will not lead to unacceptable environmental impacts.
It is one of the requirements needed to secure a permit to operate a mine.
South Cotabato and Zamboanga del Norte have enacted open-pit mining bans.
The Energy department is offering two areas in South Cotabato and one in Zamboanga del Norte.
Mr. Layug said the Energy department is working with all the parties involved to ensure there will be no issues that will arise for investors.
“We will coordinate with [the Environment department] on policy issues relating to coal mining,” said Mr. Layug.
Companies interested in the coal contracting round have until Jan. 31 to submit pre-qualification documents.
The areas being offered are: Panukulan, Burdeos and Polilio in Quezon; Calauag, Tagkawayan, and Guinayangan in Quezon; Del Gallego, Camarines Norte; Rapu-Rapu Island, Albay; Bacon, Prieto Diaz and Gubatcon, Sorsogon; Cataingan, Masbate; Calintaan, Rizal, San Jose and Magsaysay, Occidental Mindoro; Bulalacao, Oriental Mindoro; Calatrava, Negros Occidental; Toledo, Minglanilla and Cebu City, Cebu; Inabanga, Clarin and Sinagbayan, Bohol; Kitcharao, Agusan del Norte; Magsaysay, Misamis Oriental and Carmen, Agusan del Norte; Sibagat, Agusan del Sur; Butuan, Agusan del Norte; Bayugan, Agusan del Sur; Bislig and Lingig, Surigao del Sur; Trento, Agusan del Sur; Nabunturan, Compostela Valley; Terragona, Davao Oriental; Togoloan II and Kapai, Lanao del Sur; Iligan City, Lanao del Norte; Lake Sebu, South Cotabato, Palimbing, Sultan Kudarat and Maitum, Sarangani; Kiamba, Sarangani; Godod, Zamboanga del Norte; Kabasalan, Zamboanga Sibugay; Ipil and Naga, Zamboanga Sibugay; Diplahan, Zamboanga Sibugay; Buug and Malangas, Zamboanga Sibugay; and Imelda and Alicia, Zamboanga Sibugay. -- Emilia Narni J. David