Wednesday, September 03, 2008 Foreign firm eyes coal production in Cotabato
KORONADAL CITY -- A foreign firm exploring coal potentials in the mountains of Lake Sebu, South Cotabato appeared headed for commercial production, as it revealed plans to build road networks and port facilities as its pre-feasibility study continues.
In a recent statement, Dwyka Resources Limited, which is listed in both the Australian Stock Exchange and the Alternative Investment Market of the London Stock Exchange, said the pre-feasibility study on the Daguma coal project has progressing ahead of expectations and according to schedule.
The study manager, Sedgman Limited, has visited the Philippines for an inspection of the project areas and for meetings with local construction companies and haulage contractors. The outcomes of the site visit were extremely positive, Dwyka said.
Sedgman is expected to complete the pre-feasibility study on September 12. It covers the coal handling and processing plant, coal transport, stockpiling and blending, port and ship-loading facilities, and infrastructure requirements of the project.
The study recommended the construction of a road to haul the coal from the site to a port for shipment. The straight-line distance of the proposed road from the Daguma mine site to port is approximately 30 kilometers.
A haulage road from the mine site to the port can be built with relative ease, Dwyka said.
The statement was silent on the location of the port, but the closest coastal town from Lake Sebu is Maitum in Sarangani.
Dwyka announced that a contract for the conceptual design study and costing of port facilities has been awarded to Metaphil of the Aboitiz Construction Group Inc.
"We are delighted to see the logistics of this coal project exceeding our expectations and that the delivery of the pre-feasibility study remains on schedule which will enable us to continue to move forward with the project," Melissa Sturgess, Dwyka chief executive officer, said in the statement.
She noted that at this early stage, the company remains confident in its ability to readily deliver production from Daguma to the coast for transport to export markets.
Dwyka has an option to acquire an indirect interest of up to 100 percent in each of two Filipino companies pursuing the coal deposits in the village of Ned.
The Daguma coal project comprises of 10 coal blocks, each having an area of approximately 10 square kilometers, where two of the blocks have been the subject of historical drilling involving 32 holes, a project brief said.
Initial analysis of the coal quality in the Daguma project suggests that it is of medium calorific value, approximately 5,300 kcal/kg, making it suitable for both the export market to India and China and for in-country power stations and industrial (cement) purposes, it added.
Last May, Dwyka raised GBP10.3M or some P830 million from institutional investors in support of the Daguma project.
The amount will be used for the project costs through to January 2009, including initial option exercise expenses as well as costs related to further exploration and drilling, equipment purchases and staffing, the company said earlier.
