San Miguel eyes coal blocks offered in DoE auction

By Sheldeen Joy Talavera, Reporter

ANG-LED San Miguel Corp. (SMC) is looking at coal areas offered by the government, including a mining site currently operated by Semirara Mining and Power Corp. (SMPC).

A source familiar with the process told BusinessWorld that representatives from the energy group were present at the pre-submission conference held by the Department of Energy (DoE) on Thursday.

Representatives from San Miguel Global Power Corp., SMC’s power generation arm, and its subsidiary Sual Power, Inc. (SPI) attended the conference.

SPI operates the 1,200-megawatt (MW) coal-fired power plant in Pangasinan, which supplies power to the Luzon grid. The facility has been operating since 1999.

SMC is among the country’s largest power producers and has a diversified portfolio that includes the 600-MW Mariveles plant in Bataan and the more than 1,000-MW Masinloc plant in Zambales.

The DoE held the conference to address bidders’ inquiries and clarify requirements ahead of the submission of proposals.

Under the bidding round, the DoE is offering three pre-determined areas (PDAs) covering 18 coal blocks across about 18,000 hectares. These include 10 blocks in Semirara Island in Caluya, Antique; five blocks in the municipalities of Benito Soliven, Naguilian, and Cauayan in Isabela; and three blocks in Amulung and Iguig in Cagayan.

The deadline for submission of application documents is April 28, when the opening of bids will also take place.

The auction includes blocks covered by a coal operating contract currently held by SMPC, the country’s largest coal producer.

SMPC also attended the conference and is seeking to continue its mining operations on Semirara Island.

Meralco PowerGen Corp., the power generation arm of Manila Electric Co., has earlier expressed interest in partnering with SMPC if it participates in the auction.

During the launch, Energy Undersecretary Alessandro O. Sales reminded prospective bidders to “demonstrate sound technical capability, strong financial capacity, and a credible plan that puts safety, environmental protection, community development, and progressive rehabilitation at the center of operations.”

“This is how we uphold responsible resource development while we continue to strengthen energy security and accelerate the long-term transition of the power sector,” he said.