Coal Asia Holdings will increase its stake in Titan Mining & Energy Corporation (TMEC) in a strategic move to capitalize on the growth in coal demand in Mindanao. TMEC owns the mining and development rights to the Davao Oriental and Zamboanga Sibugay coal sites which have a combined total potential coal resource of 120 million tonnes.
The increased share is yet to be approved by the Securities and Exchange Commission, however partial payment of the subscription has been made by Coal Asia.
The development plan for the Davao mine is on schedule with annual commercial production of 600,000 tonnes of high grade coal scheduled to begin in 2014. Construction of additional support structures for mine development at the 7000 hectare Davao Oriental site will also be undertaken, including mine access roads, port facilities, blasting operation facilities, a camp site, treatment plants and an in-house laboratory.
Coal Asia has already secured offtake contracts for coal from domestic and international customers and is looking to export to India, Japan, Taiwan, Hong Kong and Vietnam.
The company says it is well positioned to capitalize on the expected growth in coal demand by large-scale energy producers preparing for growth in Mindanao and is on its way to becoming the country’s second biggest player in the energy generation sector after Semirara Mining which controls 94% of the market.
The Philippine Energy Plan to 2030 outlines the need to double the current installed generating capacity of 15,000 megawatts. To add to its commitment to the energy sector, Coal Asia’s affiliate, Colossal Petroleum Corporation is buying into VenturOil which owns the service contract covering the offshore oil and gas exploration rights to Northwest Palawan encompassing the Cadlao and Bonita oil fields.