Coal Mining in Philippines

BISLIG COAL DEPOSIT

LOCATION

The Bislig Coal Deposit is located approximately 29 kms. south of Bislig City. Bislig City is located approximately 140 kms. north of Davao City, the largest city in Mindanao, and 925 kms. south of Manila, the country’s capital.

The principal access to Bislig City is by land and sea. Land access is via an all-weather gravel road that connects to the Pan-Philippine Highway approximately 45 kms. west of Bislig City. Travel from Davao City to Bislig City takes approximately 6 hours by vehicle. Sea access is through the deep water port of the Paper Industries Corp. of the Philiippines (“PICOP’) in Mangagoy, Bislig City which is capable of handling large bulk carrier ships.

The Bislig Coal Deposit is composed of 11 contiguous Coal Blocks with a total areal coverge of 10,740 hectares

 

Coal Quality

The rank of Bislig coal is classified as Subbituminous B to Subbituminous A under ASTM standards. This is best characterized as a low sulphur coal, with moderate to high ash and thermal values ranging from 6,165 to 10,048 BTU on an air-dry basis.

With the completion of feasibility study and mining plans for its underground operations, a total of 24.0 MMT of the underground resources can now be classified also as reserves. Combined with 6.1 MMT surface mineable reserves, total reserves of the Company are estimated at 30.1 MMT at present.

 

 

DAGUMA COAL DEPOSIT

 

L OCATION

 

The Daguma Coal Deposit is located approximately 40 km south of Isulan, the

provincial capital of Sultan Kadarat, 77 km west-northwest of General Santos City,

the largest city in the region, and 995 km south of Manila

 

Access to the Daguma Deposit is over improved and unimproved roads leading south

out of Isulan. Approximate travel time in clear weather from Isulan to Daguma is four

hours. Several sections of the route are currently impassable to four-wheel-drive

vehicles during inclement weather. Motorcycles are the most suitable vehicles to

access the property. Isulan connects to General Santos via paved highways, where

there is daily commercial air service to Manila.

 

P ROPERTY D ESCRIPTION

MGMEC acquired COC No. 134 for the Daguma Deposit in February, 2005. The

COC contains seven coal blocks, covering an area of approximately 7,000 ha