PNOC EC is venturing into the coal mining business in Indonesia in order to ensure a stable and price-competitive supply of coal for the Philippine market.

In 2008, PNOC EC signed a Memorandum of Agreement with Putra Asyano Mutiara Timur (PAMT) for the conduct of technical, legal and economic due diligence to determine the viability and commerciality of operating a coal mine project in the company’s concession area in Central Kalimantan, Indonesia. The technical due diligence started in September 2008 with reconnaissance work that mapped several coal outcrop locations and identified a number of alternative transport and shipment routes that PNOC EC could use once the company decides to produce coal from the project area. Likewise, the legal due diligence commenced in October 2008 with the engagement of the consultancy services of an Indonesian law firm.