Brixton Energy and Mining Corp., a wholly owned subsidiary of listed Philex Petroleum Corp., has transferred its Zamboanga coal contract to Grace Coal Mining and Development Inc.
In a filing with the Philippine Stock Exchange, Philex Petroleum disclosed on Thursday that it has finalized agreements for the assignment of Coal Operating Contract 130 (COC 130) in Zamboanga Sibugay to Grace Coal.
The assignment, however, is still subject to the approval of the Department of Energy (DOE).
The underground coal mines in COC 130 were closed in September 2013, following suspension of operations in January 2013 because of low coal prices.
It was reported in September last year that Brixton Energy proceeded with the closure of its coal mine in Diplahan, Zamboanga Sibugay.
The underground mining operations in COC 130 has been suspended since January 1, 2013 because of negative margins resulting from the high operating costs and the substantial drop in regional coal prices in 2012.
Brixton Energy said that it had decided to conduct a detailed review of the operations and prospects of its coal mining project in the area. The review was initially targeted to last only up to six months.
The company admitted it had been adversely affected by the significant decline in world coal prices.