Power company signs supply agreement with mining firm

THE AYALA-LED GN Power Kauswagan Ltd. Co. (GNPK) has signed a memorandum agreement with mining company Silangan Mindanao Mining Co. Inc. for a 12-year 55-megawatt power supply starting 2020.

In a statement, the power company said the agreement was signed after the requirements of definitive feasibility of the mining company’s project was satisfied as well as power supply availability and cost as well as sustainability were considered.

“Power sourcing is very important for the Silangan Project as it forms an integral part of our business due to the lack of available sustainable power supply and capacity from the local distribution utility in Surigao del Norte within the defined commercial operations period,” said lawyer Axel G. Tumulak, mining company’s legal officer and landbanking manager.

Eric T. Francia, president of AC Energy, mother company of the power firm, said the agreement symbolizes the commitment of his company to increase generation sources for Mindanao.

“AC Energy believes in the strong economic potential of Mindanao. GNPK offers low cost and dependable power to the region, which will help unlock its potential,” said Francia.

The success of the mining project, said GNPK chair Daniel Chalmers, “will result in a supply chain that will improve the lives of the people in their host communities, developing the country not just for their shareholders but also for their local stakeholders.”

He said his company “is delighted to be a part of that goal by delivering power to Silangan’s facilities at a reasonable price to keep their costs down and enable them to help more people in the areas where they operate.”

GNPK, which is building a 552-megawatt power complex in Kauswagan, Lanao del Norte, is set to provide power to the Mindanao grid starting next year. It is a partnership of AC Energy Holdings Inc., Power Partners and the Philippine Investment Alliance for Infrastructure Fund.

The mining company, on the other hand, is a subsidiary of Philex Mining Corp. which has a 2,000-hectare mining project in the towns of Tagana-an, Sison, Placer, Tubod and Mainit in Surigao del Norte.

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