Indonesia, Philippines sign $80 million coal contracts

Indonesia?s coal mining consortium (ICMA) on Monday signed two long-term contracts with Philippine?s NPC/PNOC Coal Corporation to supply it with coal with overall transaction values amounting to US$80 million annually.

Signing the first contract were ICMA chairman R.A. Sunardi and the vice chairman of NPC/PNOC Coal Corporation, Vincent S. Perez. Meanwhile, R.A. Sunardi and the president & CEO of NPC/PNOC, Florante J. Navarro, signed the second accord.

Under the first contract, ICMA will supply an estimated two million metric tons of coal to the Philippine company annually with transaction values estimated at nearly US$50 million annually.

Meanwhile, the second contract entails that the Indonesian consortium will supply NPC/PNOC with up to one million metric tons of coal with transaction values of approximately $30 million annually.

Sunardi said the coal to be supplied to the Philippines would come from Ombilin in South Sumatra.

The contracts do not mention when ICMA will ship coal to the Philippines and for how long they will be effective.

The contracts were signed in a business luncheon organized by Indonesian Chamber of Commerce and Industry (Kadin) which was attended by entrepreneurs from the two countries. The event took place in conjunction with the visit of Philippine President Gloria Aroyo Macapagal. (*)