MANILA, Philippines - Coal Asia Holdings Inc., a publicly-listed exploration company, said it has utilized the proceeds from its initial public offering (IPO) in October last year to jumpstart its mine projects.
In a disclosure to the Philippine Stock Exchange yesterday, Coal Asia said it has spent P126.8 million for working capital and P75.594 million for its Davao Oriental project, particularly for coal mine exploration work.
Coal Asia, through subsidiary Titan Mining and Energy Corp., has been embarking on exploration and mine development activities in the Mindanao area. It has earmarked the proceeds from its IPO for its Davao Oriental coal mine, which is targeted to be on stream by 2014, and the Zamboanga Sibugay mine by 2015.
Coal Asia raised P800 million from the sale of shares to investors last year.
The company said the IPO would enable them to meet the anticipated strong demand for coal.
“More importantly, it will enable Coal Asia to supply enough coal for the expected explosion in demand by large-scale energy producers racing to establish their coal-fired energy-generating plants as well as for cement plants already in place in the region as they too prepare for the impending growth of Mindanao through the government’s plans to establish key economic zones in the country’s southernmost region,†it said.
Aside from supplying coal for the power sector, Coal Asia is also eyeing to supply steam-grade coal to various manufacturing plants around the country that have converted their diesel-powered plants into coal-powered plants to mitigate costs.
Furthermore, Coal Asia is considering exporting coal abroad to other countries in Asia such as India, Japan, Taiwan, Hong Kong and Vietnam.