ADVANCES IN PHILIPPINE COAL PRODUCTION LAUDED

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 06485405
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 2
• Document Creation Date: March 9, 2023
• Document Release Date: June 7, 2021
• Case Number: F-2021-01728
• Publication Date: April 4, 1984

Approved for Release: 2021/06/02 C06485405
ALL INFORMATION CONTAINED
HEREIN IS UNCLASSIFIED EXCEPT
WHERE SHOWN OTHERWISE
DATE: 12-21-2011
CLASSIFIED BY UC60322LP/PLJ/C6
REASON: 1.4 (c)
DECLASSIFY ON: 12-21-2036
Copyright 1984 McGraw-Hill, Inc.
Coal Week International
April 4, 1984
SECTION: ASIA; Vol. 5, No. 14; Pg. 2
LENGTH: 598 words
HEADLINE: Advances in Philippine coal production lauded
BODY:
The Philippines' gains and experiences in developing its coal
resources could be educational for other developing countries,
particularly Asean members, that are also in the process of
exploiting their coal resources, said Philippine Minister of
Energy, Geronimo Velasco, at a recent international exposition on
coal.
The Philippine experience shows there are unique obstacles to
overcome and ingenious solutions must be used, Velasco commented.
It took nearly a decade to increase Philippine coal production
from about 40,000 mt in 1973 to 330,000 mt in 1980, he pointed
out. In 1982, output reached 558,000 mt. Last year, production
exceeded 1-million mt. Velasco predicted that by 1985, some 15%
of the country's energy needs will be supplied by coal compared
to barely 1% in 1980.
Despite these gains in production, demand still will exceed
supply. Director of Energy Development, Wenceslao de la Paz,
said that even if output should hit 1.6-million mt, it would
still fall short of the projected demand of 2-million mt in 1984.
However, he says the government wants to expand output to
8.8-million mt by 1992.
The recent speed up in coal development of indigenous coal
resources is an indication that the industry has taken off and
that a major obstacle has been solved, said Velasco. For the
first nine years of development, plans to increase production had
been hampered by coal producers' attitudes. Producers were
reluctant to raise output unless they could be assured of a
sizeable market. The situation also was exacerbated by a
tendency on the part of potential coal users to wait for
development of an adequate supply of Philippine coal before they
would invest in coal-fired equipment.
To break the impasse, the government stepped in and identified
those industry sectors which would benefit the most from the
switch to coal. The cement industry, selected as the first major
conversion market, was given financial and technical assistance
through government agencies and financing institutions in
order to make the change from oil to coal. Further, state-owned
Philippine National Oil Co. started a coal mining venture,
(ISA - cdF..- 2-013,Lto, PDPs 'Li
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purchased production from other mines and even imported coal from
oyerseas to assure domestic users of a sufficient supply.
Logistics systems developed
In addition, the Philippines' National Coal Authority began
work on a logistics system to solve transport problems. This
move was necessary as many of the mines are in far flung areas
away from the major coal users.
The Philippines also sought assistance from the governments of
West Germany and the US to help spur the participation of
qualified foreign companies in the Philippine coal program, said
Velasco.
(S) comments the US Trade &
Deviopment_ program iaenzimiea six nigh priority projects in
industry and funded four of them. The projects included: an
economic and technical feasibility study for the Ministry
of Energy and PNOC's integrated energy research laboratory
incorporating a $55,000 grant provided by Dames & Moore; a study
for development of the Himalian coal field on Semirara Island
with a $400,000 grant; a $400,000 study for a coal preparation
plant for mines located on northern Cebu Island; and a $150,000
study to develop alternative transportation methods for coal
� mines in southern Cebu Island. Those projects represent the
Philippines' "well organized and systematic approach to the study
of optimizing development, transportationprocssing and
(s) tilization- -of - it,s -6oal -resourees-,-"- -said
ikrA-- LAC- 2-02:3"1.9 FiVs
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