PNOC EC operates COC 41 within the Malangas Coal Reservation in Zamboanga Sibugay, straddling the municipalities of Malangas, Diplahan and Imelda. PNOC EC operates large-scale coal mines called the Integrated Little Baguio Mines 1 and 2, currently the largest semi-mechanized underground coal mines in the country, as well as the Lumbog Coal Mine. As holder of the COC, the company also supervises the mining operations of the small-scale mining operations of various small-scale miners and mining groups within the area.

The ILB mines are within two COC 41 coal blocks, CBS 41-H-399 and CBS 41-H-400. Said area has a total remaining mineable reserve of 1 million metric tons with a Life-of-Mine of eight (8) years.

Located south of the ILB mines, the Lumbog Coal Mine is within coal blocks CBS 42-H-39 and CBS 42-H-40. The development of both shafts is ongoing.

Aside from ILB and Lumbog, 44 small-scale coal mining permit holders are being supervised within the concession area.

PNOC EC started mine operations of the ILB Coal Project on 16 March 2009. Said mine was previously operated by PNOC EC’s JV Partner, Taiwan Overseas Mining Co (TOMC). At the end of 2012, the ILB Mines’ total production since takeover from TOMC stood at 228,800 metric tons.

The Lumbog Coal Project covers an area of about 170 hectares and has a mineable reserve of 1.4 million metric tons with a mine life of eight (8) years. Work began in July of 2011 and groundbreaking took place on 24 August 2011. It will have a projected 200,000-ton annual production.

The Lalat Coal Project is in joint venture with A. Blackstone Energy Corp (ABAC) as Operator. In the Lalat area, development is still ongoing. Total main shaft length is now at 300 meters as of October 2012. As of September of 2012 the total length of the ventilation shaft is at 291.43 meters.

PNOC EC is also exploring other areas within COC 41 in Malongon, Lower Butong and Sta. Barbara. Malongon exploration activities started with drilling on 15 December 2009. The total coal resources for the northern part of the Malongon area has increased to 660,000 metric tons as a result of this drilling program.

The drilling programs for the Lower Butong and Sta. Barbara areas commenced on 20 October 2011. The drilling contract is for a total length of 8,100 meters for drilling and geophysical logging. As of 31 December 2012, a total of 7,962.58 meters was drilled in both areas. The confirmatory drilling of the Lower Butong area resulted in a slight increase in coal reserves to 1.1 million metric tons.

In 22 June 2012 the Department of Energy granted an 18-year extension of COC 41 until 13 August 2030.