Philex, Meralco in talks for power plant jv in Surigao

MANILA, Philippines - Philex Mining Corp. and Manila Electric Co. (Meralco) are in talks for the possibility of putting up a 50-80 megawatt coal-fired plant in Surigao del Norte, their chairman Manuel V. Pangilinan said.

Under the plan, Meralco, through Meralco Powergen Corp., is eyeing a joint venture with Global Business Power Corp. of the Metrobank Group to build and operate the power plant which would be used to supply electricity to Philex Mining.

“There’s a broad understanding (with Global Business Power),” Pangilinan said when asked if the joint venture has been finalized.

Early this year, Meralco Powergen and Global Business signed an agreement for potential power projects in Mindanao.

Pangilinan said the project is related to the mining firm’s mines in the province.

He said that for Philex to proceed, it would need 50 to 80 MW of power capacity with the remaining – if any – may be sold to other off-takers.

The target for the commercial operation of the mine is 2017, Pangilinan said, but declined to provide investment figures.

He said earlier that Philex continues to invest about P10 billon each year for the development of the mine.

The company’s Silangan project in Surigao del Norte is located at the northern part of Mindanao and combines the development of the Boyongan and Bayugo deposits, which are comprised of gold, copper, and silver.

In February 2009, Philex Mining consolidated its interest in Silangan by purchasing the remaining 50 percent equity interest held by Anglo American Exploration BV and Anglo American Exploration (Philippines) Inc. for $55 million, the company said.