PNOC-EC eyeing C. Kalimantan coal project

PNOC Exploration Corp. (PNOC-EC), the coal and oil exploration unit of state-owned Philippine National Oil Co is conducting due diligence on a coal asset in East Kalimantan in order to secure a stable and competitive supply of coal for the Philippine market.

PNOC-EC entered into a strategic alliance with Putra Asyano Mutiara Timur in 2007 for a joint coal mining project at the Ampah coal concession located in Central Kalimantan.

The company started legal, technical and financial due diligence in Indonesia in 2008.

The 5,000 hectare concession area is located in Ampah, Tamiang Layang, Barito Utara, Central Kalimantan. About 12.5 million metric tons of potential reserves have been initially computed over a 300-hectare of the Ampah concession area, a report said.

The company last year completed the block boundary survey, aerial topographic survey of the Indonesian concession area, proposed route haul and access roads and the proposed location of the receiver load-out port/jetty.

"Geologic evaluations and core drilling of exploration wells are still ongoing. After the completion of the drilling activities as well as the legal and financial due diligence, the company will evaluate whether to pursue the buy in and develop the area," the Company said. (alex)