Mindanao's biggest coal miner bags 5 contracts worth P1.5 billion

MANILA, Philippines - Titan Exploration and Development Corp. (TEDC), the biggest coal mining operator in Mindanao, has bagged five more coal contracts which could potentially generate 200 million metric tons of high grade coal reserves worth P1.5 billion.

The projects, which will open up about 18,000 new jobs in Mindanao in the near term, will be located in Zamboanga Sibugay and Davao Oriental under the Department of Energy’s Philippine Energy Contracting Round (PECR). 

These mining contracts will cover 11,000 hectares in Zamboanga Sibugay distributed throughout Siay, Payao, Diplahan and Buug, and 7,000 hectares in Manay, Davao Oriental.

TEDC is an affiliate of the John Tiu Ka Cho (JTKC) Group of Companies, a renowned player in the hotel and resorts field, financial services sector, manufacturing and real estate industry. TEDC is also an affiliate of Pacifico Sul Mineracao Corp., an iron ore and chromite mining firm.

The company is expected to start coal mining operations in the second quarter of next year. It said it has entered into negotiations with potential buyers of its coal produce led by cement and canning companies based in the area.

TEDC president Jaime T. Ang said the wide array of its coal output will serve market demands across different industries.

“The awarding of the five coal operating contracts will allow us to build up our exploration and development portfolio, as well as increase local coal production to help the country reduce the reliance on energy imports,” he said.

Ang said TEDC plans to supply thermal coal to coal-fed power plants, cement plants, canneries, and other manufacturing plants to support the country’s goal of working towards energy independence.

“With Titan Exploration’s huge potential coal reserves, it will soon be the next big player like Semirara Mining Corp. in the short term,” Energy undersecretary Ramon V. Oca said.

Ang said several of these sites are located within 15 kilometers of the nearest port or shoreline, thereby enabling TEDC to ramp up productivity and decrease overall delivery and logistic costs compared to the other coal companies.

Energy Secretary Angelo Reyes stresses that coal will remain a main source of energy in the Philippines.

“Right now we are importing about 70 percent of our coal requirement. Coal is a transition fuel. We are only using it because renewable energy has not yet really developed,” Reyes said.

Reyes has been encouraging investors to keep pouring in capital in coal power development since there are already clean coal technologies that could be utilized.

“Coal is important because it provides us the energy that we need during this transition period moving to renewable energy. We are encouraged by the fact that demand for coal has increased because a lot of people are converting from bunker, which is dirtier, so we are encouraged by that shifting,” he said.

Aside from TEDC, the DOE has also awarded one coal contract each to Black Gem Resources and Energy Inc. and Dell Equipment and Construction Corp. to develop coal sources in Davao Oriental and South Cotabato, respectively.

Black Gem Resources was formed in 2008 by a group of Chinese businessmen led by Zheng Tenxiong. Aside from mining and exploration, Black Gem is also into construction and maintenance of pipelines and tubing for storage tanks, railways, tramways, roadways and transporting and storing of oil and gas.

Dell, on the other hand, was formed in 1993 with land development works financed by Prime East Properties and its affiliates.