San Miguel Energy Corp, a subsidiary of Philippines conglomerate San Miguel Corp, has signed a deal to acquire 100% of Daguma Agro Minerals Inc, a mining firm with development and production rights in coal-rich Lake Sebu, South Cotabato. The takeover of the mining project is in line with San Miguel’s plan to put up a coal-fired power plant in General Santos City.
“SMEnergy contemplates to maximize the utilization of the coal deposits of Daguma in South Cotabato and is presently evaluating the viability of constructing and operating a 150- to 300-megawatt mine-mouth power plant in the vicinity of General Santos City,” a company statement quoted by Philippine Daily Inquirer said.
The Daguma coal project holds a 2,000 ha license area with a potential coal reserve of 104 Mt. The coal quality in the project is of medium calorific value and is deemed suitable for export to markets like India and China as well as for local power generation and other industrial purposes like cement manufacturing.