Coal dev’t contract process set for streamlining

THE Department of Energy (DoE) said it plans to introduce a new type of contract that will accelerate the development of confirmed coal deposits.

In a draft circular, the DoE proposes awarding coal operating contracts structured to allow miners to start production faster.

“Aside from proclaimed coal mining reservation areas, there are other areas in the country with existing data that confirms the existence of mineable coal reserves of commercial quantity that may already be developed and produced thereby reducing the period required to utilize coal resources,” the DoE said.

Contracting for coal operations is currently governed by DC2017-09-0010, which covers the full lifecycle of activities, including exploration, within proclaimed coal mining reservation areas.

The DoE seeks to accelerate the utilization of the country’s coal resources by setting clear guidelines to allow companies to start mining directly.

Under the proposed rules, the DoE may grant development and production coal operating contracts based on applicants’ nominated areas of interest and the DoE’s publication of coal areas open for application.

The contract area may cover up to 15 coal land blocks within a single coal region and must include areas where the DoE has confirmed there is enough coal to mine. These areas should have verified coal data, so no further exploration is needed before mining.

Each contract may last for 10 to 20 years, depending on how much time is needed to develop and mine the coal. Upon expiration of the initial term, the contract may be renewed three consecutive times, for a total renewable period not exceeding 12 years.

The Philippines imports most of its coal requirements, which is responsible for around 60% of power generation. It, however, seeks to reduce dependence on fossil fuels and attain a renewable energy share of 35% by 2030. — Sheldeen Joy Talavera