BIZ BUZZ: MVP group seeks deal with Consunjis
Tycoon Manuel V. Pangilinan’s power generation arm wants to get a hold of the Semirara coal contract, even with just a minority stake, as it leans on the Consunji Group’s industry know-how.
“We’re still exploring. We’re doing due diligence. The interest is there, of course,” Emmanuel Rubio, president and CEO of Meralco PowerGen Corp. (MGEN), told reporters Tuesday when asked for updates on talks with Semirara Mining and Power Corp. (SMPC).
“Well, I’m sure if ever, we’ll be taking a minority position … They know that business well,” he added.
Aside from SMPC, the power giant showed little interest in reaching out to other potential players.
Rubio reiterated that MGEN’s participation in the coal contract bidding would depend on how much coal is left as well as the coal quality.
“Can we actually burn those coal? We’re using some Semirara coal in some of the plants, but at the end of the day, we have to combustion test the coal in our existing plants,” the official said earlier.
Semirara’s contract with the government is set to lapse in July 2027, as the Department of Justice junked its plea for an extension of 13 more years.
Industry sources, including the country’s energy chief, said SMPC has the definite advantage in the auction given its technical clout and resources.
Some analysts even said that SMPC may not only regain further control on the Semirara Island, but it may find its way locking in other sites with confirmed coal reserves, as the government also seeks bidders for Cagayan and Isabela blocks.
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