Skyrocketing pump prices spell profit for coal trader

Coal trading company Asia Pacific Energy Resources Ventures, Inc. (APERVI) sees growth in its importation of coal products, as big manufacturing companies now prefer to use coal with the skyrocketing cost of oil.

APERVI president Cesar Ibañez Loa-as said that the company has noted an increasing demand for fuel, specifically from cement companies and other big manufacturing plants, as well as the establishment of more coalfired power plants in the Philippines.

APERVI, a Cebu-based company which imports tons of coal products from Indonesia is bent on increasing its importation of coal products, as Philippine production cannot meet the strong demand from the market.

The Cebu- based company is one of the largest importers and traders of coal products in the Philippines.

In Cebu, he said the company is in negotiation with big cement plants and other manufacturing companies which largely uses coal for its respective power generating machines.

Data from PhilCoal showed that at present the Philippines is producing only 7.61 million metric tons (MT) of coal annually, which is way below the demand of around 14 million MT.

Last year, the Philippines imported roughly 10 million MT of coal from Indonesia and Vietnam.

There are only two major coal producers in the country, Semirara Mining Corp. in Antique and the Philippine National Oil Co.Exploration Corp. in Zamboanga Sibugay.

Earlier the Philippine Chamber of Coal Mines executive director Arnulfo Robles said that the continued growth in energy demand and the development of new and cleaner technologies will encourage more firms to invest in coal mines and power plants.

“The best thing here that happened is that the new coal-fired power plants are using circulating fluidized bed technology. The power plants being put up can use a full range of coal quality,” Robles said.

“There are so many power plants coming onstream. With that, you will need a good supply of coal,” Robles added.

According to Loa-as, aside from the manufacturing plants that are now using coal for their fuel requirements, the company is also seeing much bigger demand of coal products, while more and more coal-fired plants will be established in the country in the next few years.

In fact, APERVI recently announced that with P14 billion, it will start building a 150 megawatt coal- fired power plant in Negros Occidental.

In April, the Department of Energy’s Philippine Energy Contracting Round (PECR) 4 attracted 69 bids for 28 of the 30 coal areas offered for exploration.

Benchmark investment is $2.5 million for the twoyear exploration of a coal block. The exploration permit is renewable for another two years./