Sultan to tap ind’l firms for coal sales

By Riza Recio

05/12/2008

Local coal miner Sultan Mining and Energy Development Corp. (SMEDC) will tap non-traditional markets such as tuna canneries, paper and textile firms to sell its coal produce from its Surigao del Sur mines.

These industries consume at least 20,000 metric tons of coal a year.

Sultan currently supplies the coal requirements of PHILBEST Canning Corp., General Tuna Corp. and PICOP Resources Inc.

With rising oil prices, more canneries in General Santos City and in Zamboanga City are expected to shift to using coal as fuel.

These manufacturers in shifting from using bunker fuel to coal invest from P25 million to P30 million to buy new coal-fired boilers.

Recovery of this investment is within one year derived from the savings in using coal as fuel, Sultan vice president for sales Michael Morales said.

With coal resources from its open pit mine in Bislig, Surigao, SMEDC has become the biggest coal mine in Mindanao and is in the best position to supply the coal requirements of manufacturing plants in the South.

Sultan Mining will begin the first development of underground mines at Bislig with commercial operations to start by late 2010.

Sultan’s Bislig coal mine has investment in a coal preparation or washing plant which allows the company to boost quality and the flexibility to customize the type of coal produced to suit the individual requirements of various boilers of its customers.

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