PNOC unit, Indonesian coal miners in cooperation talks

Publicly-listed PNOC-Exploration Corp. (EC) is preparing for exploratory talks with Indonesia for a possible cooperation in coal-related businesses.

"There are some exploratory coal projects being arranged by EC with some Indonesian firms and Indonesian government," EC president Rufino Bomasang said.

EC is the gas and oil exploration development arm of state-owned Philippine National Oil Co. (PNOC).

Bomasang said he will be meeting with the members of the Indonesian Coal Mining Association (ICMA) anytime this month in Indonesia to discuss these business opportunities.

At the same time, Bomasang said he will also explore the possibility of helping state-run National Power Corp. (Napocor) in sourcing its coal requirements.

"We (EC) would want to help Napocor and other cement companies in assuring that we would have adequate supply of coal," he said.

Bomasang said the talks are very timely amid fears of possible shortage of coal in Asia particularly those that are coming from Mainland China.

At present, EC runs the PNOC’s coal development activities after absorbing the functions of PNOC Coal Corp.

The Department of Energy (DOE) has allowed Napocor to source out its coal requirement from other countries.

Early last year, Napocor has awarded some of its coal contracts to ICMA members as part of the company’s effort to diversify its sources of coal.

Some of the members of the ICMA are: PT Tambang Batubara Bukit Asam, PT Intitirta Primasakti, PT Bukit Baiduri Enterprise, PT Berau Coal, PT Arutmin Indonesia, PT Kaltim Prima Coal and PT Sari Andara Persada, PT Tanito Harum, PT Gunung Bayan and PT Indominco.

In November 2001, the Philippines and Indonesia signed a memorandum of understanding (MOU) during President Arroyo’s state visit to Indonesia.

Among areas of cooperation established in the MOU were possible long-term supply deals of coal between the two countries.