Philex, Meralco eye joint venture to build 80-MW coal plant

Manila Standard Today

By Alena Mae S. Flores  Posted on Jun. 26, 2013 at 12:01am

Philex Mining Corp. and Manila Electric Co. are in talks to form a joint venture that will undertake an 80-megawatt coal-fired power project in Mindanao.

The coal project, if pursued, will be Meralco’s first coal project in Mindanao and will energize the Silangan copper-gold mine of Philex in Surigao del Norte.

Manuel Pangilinan, chairman of both Philex Mining and Meralco, told reporters the coal project would utilize coal from Philex’s mine in Surigao del Norte.

“I think they [Philex Mining]have approached Meralco to see if they’re interested [on the project],” Pangilinan said.

Meralco’s power generation arm, Meralco PowerGen Corp., has been scouting for sites for power development, including Mindanao.

Meralco PowerGen and Global Business Power Corp. of the Metrobank Group signed an agreement in January to pursue and evaluate the potential power generation projects in Mindanao.

“It is related to the development of the mining project of Philex in Surigao del Norte, so the mine, should it proceed and see light of day in terms of commercial operations, would need up to 80 MW,” Pangilinan said.

Pangilinan said commercial operation of the Silangan mine was expected to start by 2017 or  2018.

Pangilinan did not disclose the project cost of the 80-MW coal plant, but coal projects normally cost about $2 million to $2.5 million per MW to construct.

Philex’s Silangan project in Surigao del Norte combines the development of the Boyongan and Bayugo deposits, which are comprised of gold, copper and silver.   source