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FILIPINO-owned MG Mining and Energy Corp. (MGMEC) has
allocated P307.21 million for its coal mining project in
Bislig, Surigao del Sur.
The
project is one of the company’s three coal production
project areas, with the other two in Argao, Cebu and
Daguma, South Cotabato.
The
Bislig site was given the highest priority by the MGMEC
due to its natural geology that allows faster extraction
of the coal reserves and the available facilities on
site.
It has a
potential coal reserve of 66 million metric tons (MT).
MGMEC
has already spent for machineries and equipment and
prepared mine designs and production plans to recover
the reserves and improve further their utilization.
The
Bislig contract of MGMEC covers 17 blocks of
coal-operating contracts covering an area of about
16,740 hectares.
Coal,
mainly used in the production of electricity, cement,
steel and other basic industries, is a combustible
organic rock composed primarily of carbon, hydrogen and
oxygen.
MGMEC’s
prospective domestic customers are the Paper Industries
Corp. of the Philippines, Toledo Power Corp., Davao
Union, National Power Corp., Ilijan Cement, Alsons
Cement and Philippine National Oil Co.
The
company, which is 99.64-percent Filipino-owned, is
targeting to produce 312,000 MT of coal per year in its
Bislig site.
It is
expected to start commercial operations within the month
and will employ about 200 persons.
The
project qualified for several fiscal and nonfiscal
incentives from the government as it falls under the
2006 Investment Priorities Plan’s energy category for
the production of indigenous and/or renewable energy
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