Coal miner Sultan Mining and Energy Development Corp. is exploring the possibility of putting up a power plant in Daguma, South Cotabato, in the southern Philippines.

Sultan Mining’s coal resources are enough to power up a 300-megawatt power plant, according to sources familiar with the company’s activities.

Sultan’s wholly owned subsidiary, MG Mining and Energy Corp. (MGMEC), indirectly owns 13 percent of Sultan Energy Philippines Corp.—the owner of a 7,000-hectare concession area in what is called the Daguma coal deposit. The area is situated between the provinces of South Cotabato and Sultan Kudarat in Mindanao.

Resource consultants in 2006 estimated MGMEC’s coal resources potential at 211 million tons within seven coal blocks in Daguma.

MGMEC holds coal operating contracts (COC) that allows it to explore, develop and extract coal in specific areas covered by the contract.

“It is easier to transport electricity than to transport coal,” one source said. “At the moment, we are just exploring and finding a lot of coal.”

Sultan Mining is talking to three foreign coal buyers for possible coal supply contracts as it aims to start exports within the year. It hopes to profit from the mineral’s higher prices overseas.

Sultan Mining treasurer and chief operating officer Romina Lu said the company was talking with buyers in China and Japan.

The company is also eyeing India as an export market, as coal prices continue to go up in the global market as the price of crude oil rises.

Sultan Mining is also embarking on a P480-million initial public offering of stock and is targeting to list its shares on the stock exchange on July 9.

Sultan Mining is tapping Asian Alliance Investment Corp. to be the lead underwriter for the planned public offer slated between June 26 and July 2.