After securing the first Coal Operating Contract (COC) for a Pre-Determined Area (PDA) in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), Filipinas Systems Inc. (FSI) will invest P19 million to fund a two-year exploration program in the region.

The first COC awarded to FSI by the Department of Energy (DoE) and the Ministry of Environment, Natural Resources and Energy (MENRE) covers coal exploration in Kapai and Tagoloan II, Lanao del Sur — marking a significant step in the region’s energy development.

If the project progresses to the development and production stage, the company will provide local individuals with scholarships worth P150,000 annually.

FSI gives out incentives

FSI will also contribute a signature bonus of P250,000, P250,000 for development assistance, and P75,000 annually for training during the exploration period, increasing to P200,000 during the production phase.

Energy Secretary Raphael Perpetuo Lotilla said on Thursday that the recently awarded COC is vital in fostering energy independence for the Bangsamoro region while creating pathways for sustainable economic growth.

“The awarding reflects our collective commitment to advancing energy development and resource management in the region, empowering the BARMM to play a key role in the country’s energy future,” Lotilla said.

He added that the national government is committed to assisting BARMM in developing renewable energy sources, including solar, wind, and geothermal power.

Currently, more than 80 percent of the country’s coal requirements are imported, with 98 percent of coal imports coming from Indonesia. The exploration of domestic coal sources is seen as a means to reduce dependence on foreign supply.