Coal Asia To List P800M Shares

Coal Asia Holdings, owner of the country's second largest coal reserves and with the potential to become the biggest producer of high-grade bituminous coal, reported it plans to list P800 million worth of shares.

It reported it applied with the Securities and Exchange Commission (SEC) for the listing at most by the fourth quarter of the year.

Vicente Arana, president said that the funds raised will be used for exploration and mine development.

Coal Asia Holdings is the parent company of Titan Mining and Energy Corp. (TMEC), which owns mining exploration and development rights in Davao Oriental and Zamboanga Sibugay.

When listed, it will help boost market confidence in energy stocks due to continued rising demand for thermal coal fuels both in the domestic and international power-generating sector.

Mine developments are on-track with commercial production of 600,000 metric tons of high grade coal per year scheduled 2014.

A feasibility study done on a 214-hectare area from Old Macopa to Batinan Davao showed coal reserves yield factor of 28,000 tons per hectare which translates to an estimated market value of P23.8 billion.

Another report showed that there is potential coal resource of 120 million metric tons of coal in Davao Oriental and Zamboanga Sibugay.

A valuation report prepared by Multinational Investment Bancorporation dated May 2012 estimated Titan's coal assets at P12.5 billion.

Coal Asia has already bagged off-take contracts both here and abroad but is also eyeing the export markets including India, Japan, Taiwan, Hong Kong and Vietnam.

The company expressed confidence that with their higher grade coal sources located in Mindanao, it is in the right place at the right time with the expected explosion in demand by large scale energy producers racing to establish their coal-fired energy generating plants as well as for cement plants already in place in the region as they too prepare for the impending growth of Mindanao through the government's plans to establish key economic zones in the country's southern-most region.