TITAN Mining and Energy Corp., a wholly owned subsidiary of Coal Asia Holdings Inc., has completed a further 1,000 metric tons of coal shipment to Sarangani Energy Corp. in Maasim, Sarangani Province.
In a disclosure to the Philippine Stock Exchange (PSE), Coal Asia said it and its subsidiary Titan Mining are prepared to help cushion the impact of the shortfall in coal imports by making available their equivalent local resources given Indonesia’s coal embargo to the Philippines.
The Sulu and Celebes seas form an important waterway in the Brunei Darussalam-Indonesia-Malaysia-Philippines East Asean Growth Area (BIMP-EAGA) and are used for the passage of 55 million MT of goods and over 18 million people per year.
Before she stepped down from office, former Energy Secretary Zenaida Monsada said that power outages are not expected in the immediate future despite Indonesia’s coal embargo because local coal plant operators are required to have around 20 to 30 days of coal inventory.
“Based on our circular, they should have 20 to 30 days of inventory, including those in transit,” Monsada said.
Coal operators are also looking for other sources of coal and the alternatives include Australia, Russia and Vietnam, the former energy secretary said.
Based on 2015 Department of Energy (DOE) data, Indonesia accounted for 95 percent of the country’s total coal imports, amounting to 16.56 million metric tons.
In terms of coal usage, 79.77 percent is used in power generation, 15.22 percent in the cement industry and 5.02 percent in industrial and direct processing industries.