Agusan Petroleum and Minerals Corporation, an affiliate of San Miguel Corporation, and its partner PNOC Exploration Corporation have started drilling at the Siay coal exploration project in Zamboanga Sibugay.
PNOC Exploration said they have awarded the drilling contract to Construction and Drilling Specialists Inc. for a total meterage of 12,800 meters. It added that the drilling of four holes have started to help determine coal reserves in the area and they have reached 1,484 meters.
The two companies were the winning bidders for six coal blocks located in Siay, Zamboanga Sibugay under coal operating contract 152. The joint venture acquired the certificate of non-coverage from the Environmental Management Bureau last year.
The parties have also conducted geologic mapping of the contract area, which includes test pitting, trenching and rock sampling while the block boundary survey was completed early this year.
PNOC Exploration officials earlier said San Miguel has expressed interest to partner with the company to develop the P5 billion mine-mouth power plant in Isabela.
San Miguel has several coal interests through its energy unit, San Miguel Energy Corporation which bought three coal companies which have coal mines in South Cotabato.
On the other hand, PNOC Exploration is the holder of COC 122 which straddles portions of Cauayan City and the municipalities of Naguilian and Benito Soliven in Isabela.
The company is the holder of COC 141, which is projected to augment the production of COC 122 in the long term. COC 141 covers an area ofd approximately 3,000 hectares in the municipality of Benito Soliven, Isabela, in the Cagayan Valley of Northern Luzon. It is adjacent to the coal areas of COC 122.
PNOC Exploration also operates coal operating contract 41 in Zamboanga Sibugay, straddling the municipalities of Malangas, Diplaha and Imelda.
http://www.mb.com.ph/articles/279115/smcpnoc-partnership-starts-coal-drilling
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