Filipinas Systems to invest $323,000 for coal exploration in PH’s Bangsamoro region

Exploration will run for two years.

Philippine authorities have awarded the first coal operating contract (COC) for a pre-determined area in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) to Filipinas Systems, Inc. (FSI). To fuel this programme, the company said it is investing $323,000 (PHP19m).

According to the Department of Energy (DOE), the two-year exploration will cover Kapai and Tagoloan II, Lanao del Sur.

Once the project reaches the development and production stage, FSI will provide $2,550 (PHP150,000) annually to support local communities.

FSI has also pledged to pay a $4,250 (PHP250,000) signature bonus; $4,250 (PHP250,000) development assistance; and $1,275 (PHP75,000) annually for training during the exploration period increasing to $3,400 (PHP200,000) annually when converted to development and production stage.

“The awarding of the 1st COC in BARMM is a landmark moment for both governments,” DOE Secretary Raphael Lotilla said. “This partnership will not only foster energy independence for the Bangsamoro region but also create pathways for sustainable economic growth and development.”

DOE said over 80% of the Philippines’ coal requirements are being imported, primarily from Indonesia. Any domestic sources of coal will lessen dependence on foreign sources.