PNOC EC aims to promote the use of indigenous coal resources and to serve the local energy demand requirement of the Province of Isabela and Luzon. Consequently, the project is expected to bring widespread economic benefits to the Province while ensuring that all mining and power generation activities comply consistently with the environmental policy of the government. Likewise, PNOC EC also assures to comply with its commitments to all Project stakeholders.
The Project is a pioneering undertaking, which will utilize low rank indigenous coal to fuel a mine-mouth power plant employing “progressive mining and rehabilitation method” and “clean coal” technology.
COC 122 is located approximately 400 kilometers north of Manila and straddles portions of the City of Cauayan and the municipalities of Naguilian and Benito Soliven, all within the province of Isabela, in the Cagayan Valley Region.
The Project is being undertaken by virtue of COC 122 awarded by the DOE to PNOC EC, giving the Company exclusive exploration rights over nine (9) coal blocks, totaling 9,000 hectares. In 2010, the Company acquired the Environmental Compliance Certificate for both the mine and the power plant.
COC 122 has proven reserves of over 25 MMT (million metric tons) of lignite coal in a minable area covering about 2,000 hectares. The reserves is enough to fuel a 100 MW (megawatts) mine-mouth power plant for 25 years, with an upside potential of at least 100%.
Mining and Power Plant Methodology
PNOC EC will employ the “Progressive Mining Rehabilitation Method”, which involves the staged treatment of disturbed areas during mining operations rather than undertaking large scale rehabilitation works at the conclusion of planned mining activities. Mining is temporary and farming can resume after one year. On the other hand, the power plant will utilize the clean coal circulating fluidized bed (CFB) combustion boiler technology.