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Performance Assessment
In line with the DOE's continuing policy to ensure
energy supply security, the development of indigenous energy resources
remains a priority thrust. The objective of the coal sector is to
contribute to increased energy self-sufficiency through the
intensified sustainable exploration and development of coal resources
and to establish a progressive coal industry in the Philippines that
provides revenues and employment.
While the coal sector maintains its crucial role in the country's
energy mix, its development in the past five years (1997-2001) has
lagged behind due to (i) unfavorable geological conditions, which make
mechanization difficult, uneconomical and impractical; (ii) financial
constraints of coal producers; and (iii) depressed coal market
conditions due to the influx of imported coal.
To date, out of 40 coal mines in the country, only eight are in active
operation while the rest remain u n d e r moratorium. On the other
hand, the number of small-scale operators jumped to 15 from an average
of six permittees with active operations in the last five years.
Coal production in the past five years has maintained a 1 million
level figure from 1,076,611 metric tons (MT) in 1997 to 1,229,822 MT
in 2001, peaking in 2000 at l,353,453 MT, or an increase of 14.2
percent in the same period (Figure 4.l.3.1). This is due to the
commercial production of Semirara Mining Corporation's (SMC) Panian
pit -in the province of Antique and recently, the increased operations
of small-scale permit holders in Batan Island, Albay, Negros, Cebu and
Zamboanga Sibugay.
Compared to 2000, coal production in 2001 slid by 9.1 percent due to
the failure of SMC to meet its production targets because of frequent
equipment breakdown and the effects of the rainy season in the area
(Table 4.1.3.1). Coal production for 2001 displaced an equivalent of
3.6 MMBFOE, which translates to a savings of about USD 84.6 million.
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