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Auction of 30 Coal Exploration Contracts Begins in Philippines

  • The government started auctioning 30 exploration contracts and hopes to generate investments of PHP 2.4 billion from local and foreign companies.The department has set the last day of submission of pre qualification documents on Jan. 31, 2012. Opening of proposals is on March 1st 2012.The department will assess the proposals based on four major criteria, namely work program, 30%; financial qualification, 30%; technical qualification, 30% and legal qualification, 10%Energy Undersecretary Mr Jay Layug told reporters each coal contract area could generate investments of PHP 80 million over a four year contract period. The development period for a coal area runs up to 20 years.
  • Mr Layug said the government was promoting the development of coal areas because of the country’s coal potential of up to 2.4 billion metric tonnes. Coal production in the Philippines to date is just around 7.3 million metric tonnes annually.The areas are mostly located in Quezon, Camarines Norte, Albay, Sorsogon, Masbate, Occidental Mindoro, Negros Occidental, Cebu City, Agusan del Norte, Agusan del Sur, Surigao del Sur, Compostela Valley, Davao Oriental, Lanao del Sur, Lanao del Norte and Zamboanga Sibugay.Indigenous coal is largely mined in the Philippines by Semirara Mining Corp. in Antique, using the open pit method. The balance is provided by small scale and medium scale underground mining operations in the coal rich provinces of Surigao, Zamboanga Sibugay, Cebu, Negros Occidental and Albay.

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