PRC-Magma is still in its pre-operating stage. It was registered with the SEC on June 10, 2009 to engage in the business of exploration, development, and exploitation, and processing of renewable and non-renewable energy resources, including but not limited to wind, power, solar power, hydropower, biofuels, biomass, and coal; exploration, mining and processing of metalliferous and non-metalliferous mineral and ore resources; trading and supply of energy and mineral resources; and generation of electric power using energy resources. In September 2012, the Declaration of Trust between the Company on one hand and KAGRI and Apayao 888 on the other hand were revoked resulting in the increase to 85.0% ownership in PRC-Magma.
In March 2010, the GRESC for Mainit-Sadanga in Mountain Province and Buguias-Tinoc in Benguet and Ifugao Provinces were awarded to PRC-Magma. Remote sensing studies and re-evaluation of previous studies were conducted which highlighted potential geothermal prospect areas that warrant further investigation. Interpretations of processed Shuttle Radar Topology Mission (SRTM) Imageries are ongoing.
Mainit-Sadanga Geothermal Project. The Mainit-Sadanga Geothermal Project area was reduced to 36,288 hectares. It has a power generation potential of 60-100 MW. From the initial investigations, two volcanic centers representing two separate geothermal reservoirs are possibly present in the area located in south-southwest of Kalinga.
Buguias-Tinoc Geothermal Project. The Buguias-Tinoc Geothermal Project area was reduced to 23,328 hectares covering two municipalities of Benguet Province as well as two municipalities of Ifugao Province. It also has a power potential of 60-100MW. Previous studies involving resistivity surveys identified a clear low resistivity anomaly encompassing an approximately 7.5 sq. kilometers in Tukukan area which coincided with the occurrence of thermal manifestations. Present data suggest a highly prospective geothermal reservoir, a majority portion of which lies outside the Mt. Pulag National Park.
Aragorn Power and Energy Corporation (APEC)
APEC is still on the pre-operating stage. It was established to engage in energy resource exploration and development.
Kalinga Apayao Geothermal Service Contract .
In 2008, APEC was granted a Geothermal Service Contract (GSC) by the Department of Energy (DOE) located in the Province of Kalinga. The GSC was granted after a Certificate Precondition (CP) from the National Commission of Indigenous People (NCIP), covering a major portion of the geothermal service area, was secured. The GSC was converted into a Geothermal Renewable Energy Service Contract (RESC) in late March 2010 to avail of the incentives provided under the Renewable Energy Act (RE) of 2008. As at March 27, 2015, the consent of nine (9) out of eleven (11) ancestral domains has been secured covering 85% of the geothermal service contract area.
In November 2010, APEC and its partner Guidance Management Corporation (GMC) formed a partnership with Chevron Geothermal Philippines Holdings, Inc. (Chevron) in developing the geothermal area in November 2010. The parties signed a Farm-out Agreement which gives APEC and GMC the option to take an equity position of up to 40% in the geothermal project. The parties also signed a Joint Operating Agreement. Under the agreement, Chevron will be responsible for the exploration, development and operation of the steam field and power activities. The effectivity of the two agreements hinges on the approval by the government of the application for a Financial and Technical Assistance Agreement (FTAA).Under the Renewable Energy (RE) Act of 2008, a foreign company can own majority interest in an RE company provided the Service Contract is converted into an FTAA. The application for an FTAA has been filed with the DOE.
The project involves the development of steam fields that can generate around 100 megawatts (MW) of new capacity, providing an additional source of clean, indigenous and reliable base load power to the Luzon grid. A 100 MW geothermal project will approximately cost US$300 million. This GRESC will be the first major international investment in the country under the Renewable Energy Act of 2008.
As at December 31, 2014, APEC accomplished exploration activities that include Geological and Geochemical surveys and the Magneto Telluric Geophysical survey has been completed. Community development projects were also undertaken in the various ancestral domains.
Sub-Phase 3 (Drilling of Exploratory wells) of the exploration work program will be done in 2016. The exploration wells will take about six months to complete. If the results of the exploration wells prove positive, construction of the power plant will follow.
In September 2015, the DOE approved a one (1) year extension of the term of Geothermal Service Contract.
APC Cement Corporation was established to engage in the manufacture of cement. The cement plant was envisioned to manufacture 1.5 million tons of cement a year. The company has two (2) Mineral Production and Sharing Agreements (MPSA) with the Department of Environment and Natural Resources covering more than 1,000 hectares of land containing limestone deposits. The project is located in the Municipality of Ginatilan in Southern Cebu.
The project was put on hold because of the existing excess capacity in the cement industry. In the meantime, the Company has continued to comply with the requirements of the MPSA’s to keep them updated. With the improved economic climate in the country, the project is again being revived. The diamond drilling program was started last November 2010 as part of the exploration commitment of APC. The area drilled covered approximately 29 hectares. Thirteen (13) holes were drilled to block the cement raw materials of the area. Five (5) of these were allocated for the low-lime Barili Marl component and eight (8) were designed for the high-lime Barili Limestone. The program was officially completed last April 2011. Initial results of the Resource Estimation yielded 20 million metric tons of Marl and 80 million metric tons of Limestone, good to supply the limestone requirement of the cement plant over 25 years. The data gathered is being integrated into the ongoing feasibility study of the project. Management is currently seeking for prospective partners.
APC Cement Corp. (APCC)
Aragorn Coal Resources, Inc. (ACRI)
ACRI is still in the pre-operating stage. It was established to engage in coal resource exploration and development. It has a Coal Operating Contract (COC) with the Department of Energy (DOE) signed in January 2007 located in Isabela covering 3000 hectares.
The Isabela project was put on hold because of the anti-mining sentiment of the local government units (LGU) and the community. The COC is adjacent to the coal areas of PNOC. Partial exploration works had been conducted.
In 2013 and 2015, the DOE terminated the COC in Masbate and Isabela, respectively.