Wednesday, January 17, 2007 Firm hopes to duplicate STEAG venture
KORONADAL CITY -- Buoyed by the prospects of coal-fired power plant in Mindanao as shown by STEAG State Power Inc.'s operation of a 210-megawatt power plant in Villanueva town in Misamis Oriental, a firm eyeing huge coal deposits in a remote village of South Cotabato said it will likely establish a similar plant in the area in the future.
Flor dela Cruz, MG Mining and Energy Corp. community development and external relations officer, said building a coal-fired power plant is high on the priority list of the company.
"It's a major pipeline project. At the moment, I could not tell you how big would be the power plant. It will depend on the coal supply in the area," she said.
MG Mining is eyeing coal deposits in remote Barangay Ned in Lake Sebu town, said to be having coal deposits of 211 million metric tons.
The firm recently suspended its exploration activities but dela Cruz said these are expected to resume within the year.
Drilling equipment of its contractor broke down about five months ago and the company is presently looking for another contractor, dela Cruz explained.
STEAG, which reportedly will be fed with Indonesian coal, will supply 15 percent of Mindanao's power requirement, which has been experiencing weather-related supply problems with its hydroelectric power and rising fuel of power barges.
Coal development projects in Lake Sebu town are also being pursued by Daguma Agro Minerals, Inc and its sister company Bonanza Energy Resources, Inc.
Rufino Bomasang, MG Mining senior consultant, recently disclosed they are planning to put up a coal-fired power plant in the area to address a projected electricity shortfall in Mindanao in 2010 onwards.
"The construction of the power plant depends on the supply and demand. But the island needs an additional 200 mega watts (MW) in 2010 and after due to a foreseen growth of industries," he said.
While he declined to give cost details of the planned power plant, Bomasang said that building a power plant entails more or less $1 million for every MW.
"A 300 MW power plant, for example, would be built at a tune of $300 million," he added. (BSS)
