PNOC-EC to ink MOU with Indon coal firm

The PNOC-Exploration Corp. (PNOC-EC) is likely to sign a memorandum of understanding with an Indonesian coal firm for a possible sharing of technical expertise in mining and marketing of coal.

"We hope to sign a MOU soon with PT Garda Tujuh Buana Coal Mining Corp.," PNOC-EC president Rufino Bomasang said.

But Bomasang said the two companies will have to conduct their respective due diligence before they could proceed with the actual signing of the agreement.

"In the next few weeks, we may be able to sign an MOU. We will be giving ourselves six months to sign a formal agreement," he said.

Bomasang said the MOU may allow PNOC-EC to share its mining expertise with PT Garda and help market the coal to the Philippines. The Indonesian firm may supply coal to the country.

"We will serve as their marketing arm here in the Philippines while we will provide technical assistance in their coal exploration in Indonesia. This is a two-way venture," he said.

According to Bomasang, PT Garda, one of the largest coal firms in Indonesia, can supply as much as 1.7 million tons of coal per year to the Philippines.

Bomasang, however, pointed out that the proposed agreement with PT Garda is aimed at supplementing coal supply in the country and not displace local coal suppliers.

In fact, he said EC will be forging strategic alliance with Semirara Coal Mining Corp. for this purpose.

"This will be good for the Philippines since there will be stability of supply at reasonable cost without displacing local coal suppliers,"he said.