Natural Resources Found in Albay

The Tiwi field has an installed

capacity of 275 MWe and is
located
about
300-km
southeast of Manila in the
Albay Province. Exploration
began in 1964, and power was
first generated in 1979. By
1982 Tiwi became the worlds
first
water-dominated
geothermal system to produce
more than 160 MWe. Philippin Geothernal, Inc. (PGI) operates the steam field
and the National Power Corporation (NPC) constructed and operates the
power plants.
The Tiwi geothermal field is located on the northeast flank of Mt. Malinao, an
extinct Quaternary stratovolcano in the East Philippine Volcanic Arc. This arc
is a belt of upper Miocene to Recent calc-alkaline volcanoes associated with
subduction along the Philippine Trench. Mt. Malinao is composed dominantly
of <0.5 million year-old andesitic lavas and lesser pyroclastic rocks.
Development History
Between 1964 and 1968, the Commission on Volcanology initiated
exploration of the Tiwi geothermal field. Geologic mapping and geological
surveys were undertaken and temperature gradient holes were drilled during
that period.
In early 1971, upon the invitation of the Philippine Government, Union Oil
Company of California (Unocal) formed Philippine Geothermal, Inc. (PGI) to
explore for and develop geothermal resources. Through a service contract
entered into with the state-owned National Power Corporation (NPC) on
September 10, 1971, PGI provided the technical expertise and a portion of
the funding for exploration and subsequent development of the Tiwi
geothermal area. NPC, for its part, was responsible for building and operating
the power plants.

The Reservoir
The reservoir rocks consist of andesitic lavas and flow breccias of Mt. Malinao
and the underlying Miocene-Pliocene Polangui Volcanics. The reservoir rocks
thicken from the east to west across the field as the basement rocks deepen
toward the volcano. Basement rocks below the reservoir are metasediments

overlain by about 600 m of intercalated mudstone, limestone, and

volcaniclastic rock. The reservoir rocks are altered to a propylitic mineral
assemblage that formed by the interaction with hot geothermal fluids. A clay
cap seals the top and the sides of the reservoir.
Faults in the Tiwi area trend predominantly NE-SW. Four of the important
structures are the Kagumihan (K), Tiwi (T), Naglagbong (N), and Takla (TK)
faults.
Reservoir data indicate that the Kagumihan and Tiwi faults serve to partially
isolate the Matalibong area from the Naglagbong area.
The production area of the Tiwi geothermal field is about 13 km2 and is
divided into four geographic areas: Naglagbong (N-Nag), Kapipihan (K-Kap),
Matalibong (M-Mat), and Bariis (B-Bar). Naglagbong is a lowland area in the
eastern part of the field. The
Kapipihan area is in the rugged
valley to the west. Matalibong and
Bariis areas occupy high ridges to
the north and far west of the field,
respectively. Other areas (Joroan,
Sadurong, and Tagoytoy) within the
contract area were explored but
results were not of commercial
value.
Commercial production in the Naglagbong and Kapipihan started in 1979
with the commissioning of the first 110 MWe power plant (Units 1 and 2). As
these areas suffered encroachment of cool fluids, development was shifted
west towards Matalibong. Most current producers are in the Matalibong and
Kapipihan sectors. Units 3 to 6, each 55 MWe began generating electricity in
January, 1980, March 1980, December 1981, and March 1982, respectively.
As of 2003, 156 wells have been drilled throughout the field. Of these, 48
wells provide current steam requirements and 16 wells are used for brine
and condensate re-injection. The deepest well has a measured depth of 2784
m (9130) while the shallowest is 938 m (3078). The total installed piping in
the field is equivalent to 81 km. The brine injection in Tiwi progressed from
zero brine re-injection in 1979, when commercial production began, to 100%
brine and plant condensate injection by 1993.
Performance
Tiwi is the third largest geothermal facility in the Philippines with 275
megawatts of installed generating capacity. Since commercial operations
began in 1979 and up until December 2002, Tiwi and the Makiling-Banahaw

(Mak-Ban) geothermal operations have combined to produce 88,500

Gigawatt-hours (GWH) in gross cumulative generation. Over this 23-year
period, it is estimated that power generated from Tiwi and Mak-Ban
displaced 152.6 million barrels of oil thus saving the country an estimated
US$ 3.21 billion in terms of foreign exchange.
Outlook
Tiwi is a mature geothermal field having produced for over two decades. The
field has experienced every problem common to geothermal reservoirs. PGI,
in cooperation with NPC, has responded to and largely overcome these
problems. The decision to push through and accelerate the development of
the indigenous resource was most astute and beneficial to the Philippines at
that time. When the NPC-PGI service contract was signed, oil price was less
than US$4/bbl. By the time commercial operation commenced, prices had
quadrupled. A financial study conducted by ELC-Electroconsult for the Asian
Development Bank showed that the net cash flows including avoided oil cost
had paid for the project in 1986.
The center of production will continue to be the steam zone in Kapipihan,
Matalibong and Bariis. There are no more large sources of additional steam,
so PGIs development strategy is now focused at maximizing the generation
potential of the field and ensuring its long-term sustainability.
The single biggest source of additional generation, however, is rehabilitation
of the power plants. Rehabilitation will improve steam usage, improve
reliability and increase capacity. Currently available steam based on current
usage rate of the power plants is equivalent to 160 MW. Ongoing projects
should increase steam availability to 232 MW at the steam usage rate of the
rehabilitated plants by January 2005.

Rapu Rapu Polymetallic Project

A copper-gold-silver-zinc mining and

mineral processing project in Rapu
Rapu Island, Albay to be developed
with an investment of US$ 42 Million.
The project will be operated by Rapu
Rapu Minerals, Inc. It is expected to
generate an annual revenue of US$ 41
Million from the sales of copper-zinc
concentrates and gold-silver bullions.
Explored under the management of
Lafayette Philippines, Inc., the project
has now advanced towards the construction and development stage. The
gold plant is expected to be in operation by February, 2005 and the base
metal plant by July 2005. The project is a joint venture of Rapu Rapu
Minerals, Inc., Lafayette Mining NL of Australia, Lafayette Philippines, Inc.
and TVI Resource Devt (Phils.), Inc.
Botong Twin Falls
Apart

from

wonders

offering

to

tourists,

natural

the

exotic

Botong Twin Falls that lies deep

within
highland
straddling

the

250,000-hectare

forest
Manito,

reservation
Albay

and

Sorsogon City is also source of

extra earnings for low-paid workers
in the giant geothermal power plant in the area.
Instead of pressing for wage increases that their employer has been turning
down, these workers belonging to the Bacman Professional and Technical
Employees Union (BAPTEU) operate a water refilling station that provides
safe, mineral-rich drinking water being sold to its clients.
These workers are employed in the giant geothermal facility that produces
over 300 megawatts of power for the Luzon Grid and is being run by the
Energy Development Corporation (EDC) of the Lopez Group of Companies.

Provided with fund as capital by the Department of Labor and Employment

(DOLE) through its Workers Income Augmentation Program (WINAP), a
livelihood program for the unionized and formal sector workers, the venture
has become a solution to the labor unrest over the wage problem.
Arturo Corbe, the head of DOLE Albay provincial office, on Wednesday said
the amount of P375,000 was provided by the program through a grant, which
the BAPTEU used in establishing the Bacman Twin Falls Water Refilling
Station about four years ago.
The opening of the station, located down the towering mountain from where
the two kinds of water emanate and separately cascade gracefully on the
120-meter-high falls, also gave birth to the Bacman Twin Falls Cooperative
(BTFC), a subsidiary of the mother union that takes hold in the business
operations of the water station.
Today, Corbe said, the project assets have grown tremendously from
P587,897 as of the end of 2009, or four
months after the start of its operation, to
P1,229,784 by posting a net income of
about P153,000 as of the end of last year.
Truly, with net income as high as this that
is distributed squarely among the members
of

the

BAPTEU

and

BTFC,

the

EDC

employees have temporarily abandoned

their clamor for wage increases from their
employer,

DOLE

regional

director

Nathaniel Lacambra said.

His

office,

Lacambra

said,

hopes

to

duplicate the project in other companies, as

part of the agencys contribution to the development goal of the Regional

Development Council headed by Albay Gov. Joey Salceda.
He recalled that for years, the clamor of employees for an increase in
benefits from EDC was somewhat stressful. Employees were requesting at
least a little addition to their benefits and negotiations reached nothing but a
deadlock, with the management insisting that the financial capability of the
company could not afford it. The employees wanted some benefits. The
management said they support it. But where to get the money is a nagging
issue. This is a typical scenario in almost all companies, according to Corbe.
The deadlock opened the door for the entry of DOLE, which offered the
WINAP as an alternative solution and it worked--with the twin falls serving as
the saving grace, he added. Botong Twin Falls is among Bicols leading ecotourism attractions called twin because of the two sources of water that flow
through it.

The waters emanate from separate underground sources located over 4,000
feet above sea level or almost half the height of Mayon Volcano.
One of the falls is of fresh, crystal-clear and clean water which the Bacman
Twin Falls Water Refilling Station uses while the other is sulfuric and unfit for
human consumption, but good for bathing as it bears therapeutic effects to
common skin illnesses. Both falls end on a 30-meter wide lagoon that has
become favorite bathing place for excursionists. It could be reached through
an over 10-kilometer winding road ascending from the Maharlika Highway in
Sorsogon City or about the same distance from the municipality of Manito. (PNA)
Gravel and Sand in Sto. Domingo
Sto. Domingo has a special charm all its own. It has a happy blend of relaxed
atmosphere and scenic view that soothes, mesmerizes and delights. Among
the towns in Albay it is only here in Sto. Domingo where Mayon Volcano can
be seen up close and at a vantage point imperious and magnificent in its full

splendor oftentimes shrouded in

mystery but sometimes raging as
it spews fiery balls of fire and
lava.
The Basud River Bridge is the
best spot for Mayon watching and
for picture taking for it is here
where the volcano can be seen
up-close and here where it
disgorges
itself
accumulated
lahar and boulders. But in normal
times the water that ripples
underneath the Basud river is cool and crystal clear. It is also the main
source of commercial gravel and sand.
For the divers and nature lovers, Palipasan is an ideal dive site with its
underwater garden of corals of varying shapes and sizes, gorgonians and
schools of pelagic fishes.
For those in search of archeological artifacts, geological wonders and
remnants of the ancient world--the cliffs of Suhoton off Calayucay; the huge
perpendicular rock standing like sentries off the coast of Buhatan and sea
water underneath are waiting to be explored and discovered. Some years
ago it was off the coast of Barangays Buhatan where the barnacled-covered
anchor of a galleon and other artifacts were found.
For the adventurous and nature lover, there is the cascading Kawayan
waterfalls in Sitio Cawayan in Calayucay. One can also go mountain trekking
atop the lush green forest and experience the thrill of scaling great heights
and descending in deep and steep mountain ravines.