Mining firm to ramp up coal operations in Surigao
September 21, 2009In a statement, the company said a new agreement signed with Bislig Ventures Construction and Development Inc. (BVCDI) would allow it to boost production under Coal Operating Contract (COC) 127, which covers 2 blocks of its 11-block mining operations in Bislig.
BVCDI has fully assigned its rights and obligations under COC 127 to MGMEC. In exchange, it is paid a fixed royalty for every ton of coal shipped.
Aside from COC 127, MGMEC’s Surigao operations also include COC 45 and COC 106 where bulk of the company’s output is being sourced this year.
According to the mining firm, increasing production at COC 127 is in line with growing demand for coal among companies in Mindanao.
MGMEC vice president for sales Michael Morales earlier said they expect sales in Mindanao to reach 20,000 metric tons per month because of the planned expansion. The firm currently sells 60,000 tons a year under existing supply contracts.
Morales said their main market consists of tuna canneries and other food manufacturers with large energy requirements for their boilers. Many of these companies are now using coal to run their broilers instead of costly bunker fuel. (abs-cbnnews)
