Power demand in C. Mindanao seen to zoom in 2012

GENERAL SANTOS CITY (November 16) – Demand for power supply is likely to increase in Central Mindanao within the next four years as big industrial users are poised to go full blast in their operations.

A source, who spoke on condition of anonymity, said Sagittarius Mines Incorporated (SMI) alone will need at least 300 megawatts of power supply when its mining operations begin in 2012.

“SMI might need more than 300 megawatts of power supply,” the source who is well connected with the mining company confided.

SMI is also reportedly planning to build its own wharf in anticipation to the projected transport of its copper and gold ore to Australia.

The mining firm, owner of the Tampakan copper and gold project, is now on its extended pre-feasibility studies and among those considered is the export of copper and gold ore to Australia where it will reportedly be processed in one of the smeltering plants of Xstrata Copper.

Xstrata Copper, a subsidiary of Xstrata Plc, owns 62.5 per cent of SMI and exercises management and operation control over the Tampakan, South Cotabato-based mining company.

The Tampakan copper and gold project, with ore deposits of over 12.8 million tons of 0.6 per cent copper and 15.2 million ounces of 0.2 grams per ton of gold, is the biggest in Southeast Asia and Western Pacific region.

Two other big commercial shopping centers are also primed to operate in General Santos City next year.

Robinson’s Place has already started round-clock construction of its P2 billion shopping center while Shoe Mart is reportedly going to commence construction early next year.

The South Cotabato-Cotabato-Sultan Kudarat-Sarangani-General Santos city area (Soccsksargen), which represents District VI of Transco’s coverage in Mindanao, now consumes about 150 MW of electricity on a daily basis.

The National Transmission Corporation (Transco) office in General Santos City earlier warned of impending power shortage unless new generating plants are put into operational within the next three years.

“If no additional capacity is made, the crucial period will be in 2010 to 2011 during which the reserve level is expected to fall (to less) than the minimum reserve level,” Transco said in a power point briefing it provided to the media.

Mindanao has an existing generating capacity of 1,850.4 megawatts (MW) beginning 2008, but the dependable capacity is only 1,520 MW.

“We have to maintain a certain level of reserve capacity for maintenance of transmission lines and power plants,” Transco General Santos City chief Manuel Hamoy said.

Aside from power supplied by the National Power Corporation (Napocor) Mindanao grid, the Soccskargen area only has 116 MW generating capacity from two diesel-fired power plants located in General Santos City (56.4 MW) and in Alabel, Sarangani (50 MW).

Southern Mindanao, which includes the Cotabato and Davao provinces, has a total peak demand of 526 MW while its total dependable capacity is only 320 MW.

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