GMC group eyes coal exploration contracts in Negros

Guidance Management Corp. (GMC), an energy resource development firm, is expecting the award of two coal exploration contracts in Negros, a top company official said.

GMC chairman Joaquin Rodriguez told reporters that these contracts are expected to be signed anytime soon.

The two contracts will involve exploration and development of coal reserves in Calatrava in Negros Occidental and Bayawan in Negros Oriental.

“The coal contracts are hopefully due for signing in the next few weeks,” Rodriguez said.

Rodriguez said the contracts were part of the bidding package under the 2005 Philippine Energy Contracting Round. The other areas under this PECR are Polillo, Quezon and Gigaquit, Surigao Del Norte.

The GMC official, however, said they would have to conduct survey on the areas to come up with an estimated  reserves in the areas.

Based on Department of Energy (DOE)  data, the estimated coal resource potential in Calatrava area is placed at 2.02 million metric tons while that of the the Bayawan area is around 4.5 million metric tons.

If they could find substantial reserves, Rodriguez said they would be willing to put up a power plant in  these areas.

GMC is a consortium of Filipino, Spanish, Australian and American investors which started operations in 2005.

Recently, the DOE awarded to GMC a geothermal contract to explore and develop geothermal projects at the Amacan prospect in Compostela Valley.

The company committed to invest $300 million to put up a 40-megawatt (mw) geothermal power plant in the area.

GMC’s contract area covers an aggregate area of 47,491 hectares in Compostela Valley.

Earlier, GMC said it would be investing an initial $8 million for the project. The company plans to conduct geological surveys in the first two years before drilling the exploratory wells.

“We will spend roughly around $300 million to develop the initial 40-MW capacity of the area but we’re hoping that it could be more than 40 MW,” Rodriguez said.

GMC has also put up a $150-million joint venture biofuel project with Green Fuel Corp., a firm owned by Spanish firms Endesa and Tecnicas Reunidas.

GMC has established presence in the mining industry as well with mineral exploration applications in the most prospective regions in the country.