FROM 69 coal applications last year, the Department of Energy (DOE) has solicited only nine interest at Friday’s opening of coal applications for the Philippine Energy Contracting Round 5 (PECR5).
Energy officials are blaming the current low price of coal at the world market for the 90-percent drop in applications.
Nenito Jariel Jr., Division chief of the DOE’s Coal and Nuclear Management Division (NCMD), said the low turnout of applications reflected the current market prices of coal, which is P1,978 to P2,384 per metric ton (MT).
“If compared during the last contracting round, we received a total of 69 coal applications, since coal prices were higher with amounts ranging from P2,610, to 3,210 per MT in 2011 and P1,783, to P2,451 per MT in 2013,” Jariel said.
During Friday’s PECR 5, eight of the nine applications passed the preliminary examination of documents. Boston Mineral Mining Corp.’s application for Area 5 was rejected.
Aside from Boston, the other companies that submitted applications were TQGT Minerals Resources, Coalblack Mining Corp., Sahi Mining Corp. and Philsaga Mining Corp.
During the fourth PECR last year, the Philippine received 69 applications from eight companies, including Semirara Mining Corp. and Empire Asia Mining Corp.
The eight successful bids will now be thoroughly evaluated by the financial legal services and the coal applications technical group of the agency, according to Jariel.
The criteria used in assessing the bidding documents include 40 percent for the work program; 20 percent for the technical requirements; and, 40 percent for the financial requirements.
In the previous PECR, some applicants fail to disclose enough financial capacities, which led to their disqualification in the bidding.
According to the DOE, the PECR 5 offered 11 blocks covering a total area of 47,840 square kilometers.
The blocks are mainly located in frontier regions and cover an average size of 4,350 sq km per block, with the largest covering 5,760 sq km in the East Palawan region.
Fifteen areas were identified for coal exploration.
Area 5, which Boston Mineral applied for, straddles Butuan City, Agusan del Norte and Sibagat, Agusan del Sur.
TQGT Minerals and Coalblack Mining applied for Area 2, which covers Tandag and Tago, Surigao del Sur.