ALSONS Energy Development (AEDC) and Sagittarius Mines (SMI) have signed an agreement to jointly develop a new 400MW coal plant in Philippines.

The companies in a joint statement said that the power generated from the new plant will serve the requirements of the Tampakan mine, reported Business Mirror.

As per the agreement, AEDC will construct an open cycle gas turbine and coal-fired power station in the Kamanga agro-industrial ecozone at Barangay Kamanga in Maasim, Sarangani, to supply power to the the proposed mine.

The new coal plant will be owned and operated by A/S Power Development, a company specially organized to set up and mange the facility.

The new coal facility is expected to ramp up power generation by 2017 and become fully operation by mid-2019.

The financial details of the project are yet to be finalized.

SMI chose AEDC as its preferred power generation supplier following the technical, environmental and commercial viability studies of the project.