Two firms want Kepco coal ash

CEBU, Philippines - Two cement manufacturers wanted to buy from the Capitol the coal ash of Kepco SPC Power Corporation that is supposed to be dumped at the province-owned Balili property in Tinaan, Naga City.

The Geo Transport and Construction Inc. and the Mabuhay Filcement Inc. yesterday signed a memorandum of understanding with the Cebu province to absorb the coal ash from KSPC.

Geo Transport was represented by its vice president for finance, Stanley Chona, while Mabuhay was represented by its chief executive officer, Enrison Benedicto.

Geo Transport and Mabuhay are interested to use the ash in their cement productions. Both have cement plants in South Poblacion, in San Fernando.

Geo Transport technical manager Joseph Mallare said the MOA is not yet final as they are still testing the coal ash until March next year.

He said they will sit down again for a long term agreement.

“I believe that other cement plants would be just as interested,” Garcia said.

Garcia is also set to meet with officials of Cemex and Taihiyo Cement and other companies interested to buy the coal ash.

The KSPC was not a party in the MOU, but Garcia said it will only be consulted on the technical aspect.

“The definitive ash recycling agreement shall provide for such matters as, but not limited to, the quality, volume, and schedule of delivery of Ash, the pricing for such Ash, investment costs involving infrastructure and recycling facilities, and treatment and recycling costs for Ash accepted for recycling,” the MOU reads.

It added that the “ash recycling agreement shall take into consideration, among others, the periodic shutdown and maintenance schedule of the power plant and cement plant.”

On July 3, 2009, the province and KSPC entered into what they called Ash Disposal Landfill Facility Service Agreement, which was then amended on November 10 of that year.

Under the amended agreement, the province agreed to arrange for the disposal of ash to cement manufacturers to be recycled as raw material.

Coal ash is one of the by-products of KSPC, an independent power producer which owns 100 megawatts coal-fired power plant in Barangay Tinaan, Naga City.

On May 6, 2009, the province and KSPC entered into a MOA to use a portion of province-owned Balili property as disposal landfill for the ash generated by the power plant.

But an environmentalist group asked the court to stop the coal-fired power plant from moving ash outside its premises. — /LPM (FREEMAN)