Pasar in partnership talks with 3 energy giants

MANILA, Philippines - Three of the world’s largest power producers are in talks for a possible partnership with the Philippine Associated Smelting and Refining Corp. (Pasar) in putting up a 200-megawatt (MW) coal-fired power facility in Leyte.

Industry sources privy to ongoing negotiations said Pasar is currently holding talks with GN Power Ltd. of Netherlands, GDF-Suez of Switzerland and Egco (Electricity Generating Public Co. Ltd.) of Thailand for a possible joint venture.

GDF-Suez is a  leading supplier of energy and environmental efficiency services with a capacity of about 13,500 gigawatts. It posted revenues of seven billion euros in 2011.

If a deal pushes through with Pasar, it would GDF-Suez’s first project in the Philippines.

GNPower, on the other hand, has existing power projects in the country such as the 600-MW coal facility in Mariveles, Bataan.

Meanwhile, Egco, one of the largest independent power producers in Thailand, controls a majority stake in Quezon Power Philippines Ltd., which operates a 460-MW coal plant in Quezon province.

To date, Pasar has already completed the grid impact study (GIS) with the National Grid Corp. of the Philippines.

Pasar chairman Angel Veloso Jr. earlier said they are willing to invest in the project to support their power requirement but they would need a partner to provide the technical know-how.

The Pasar complex currently occupies 80 hectares in the 424-hectare Leyte Industrial Development Estate (LIDE).  

With the added power, Pasar’s refinery would increase capacity to 270,000 metric tons per year (mtpy) from the current 215,000. Pasar needs 70 MW per day to support its refinery expansion.

Veloso said they would want to utilize economical and cheaper power for their refinery. “This is why we opt to put up our own power facility,” he said.

He said the new capacity from the 200-MW power plant would not only support Pasar’s expansion but would also help in the growth of the downstream copper industry as envisioned by the Department of Trade and Industry.

The Pasar official said they are still studying where to sell their excess power aside from supplying to the downstream copper industry.

“We don’t know yet if we will sell our excess power to spot market or nearby areas,” he said.

Pasar’s primary product is electrolytic copper cathode, which the company has been producing for 25 years. 

The location of the Pasar copper smelter and refinery in Leyte in Central Philippines has advantages for the company and its partners. 

The smelter lies in the center of the Philippine archipelago, ready to serve the needs of the country’s reviving mining industry.

Pasar’s strategic location in the Pacific Rim allows access to copper concentrate supplies from Indonesia, Papua New Guinea, Canada, Australia, Argentina, Brazil and Chile.  Another advantage is its proximity to the refined copper markets of China, Korea, Taiwan, Vietnam, Thailand, Malaysia, Indonesia, Singapore and Japan.

The refining plant’s complex includes pollution abatement facilities, port and bulk handling facilities, an airstrip, a medical facility, and housing, recreation and educational facilities for company personnel and their dependents.