PNOC Exploration Corp., a unit of state-owned Philippine National Oil Co., will pursue the development of three coal mining areas aimed at bringing the company’s production at par with the country’s largest producer—Semirara Mining Corp.

“Our focus is on the three coal mines, Lumbog, Lower Butong and Sta. Barbara... that is our priority,” PNOC Exploration chairman Gemeliano Lopez told reporters Thursday.

The three mines are expected to increase production by 800,000 metric tons annually by 2015 from PNOC Exploration’s current output of 150,000 MT. The three mines have combined estimated reserves of over 4 million MT.

PNOC Exploration registered direct coal sales of 1.19 million MT in 2010, mostly in trading activities.

“We will go after Semirara’s output... Our coal sales will go up, especially after Lumbog [starts producing],” Lopez said. Semirara is a unit of DMCI Holdings Inc.

Lopez said PNOC Exploration would increase coal sales through blending of local but inferior coal with high-quality imported fuel.

He said 15 percent to 25 percent of cement factories were converting to coal-fired facilities, which would be a good market for PNOC Exploration.

PNOC Exploration is set to kick off its Lumbog coal mine project in Imelda town, Zamboanga Sibugay province on Aug. 24.

The Lumbog project is part of PNOC Exploration’s coal operating contract 41, called the Malangas Project Operations, which covers 170 hectares.

PNOC Exploration said the development of the Lumbog mine would start this month until 2012, with regular production expected to commence in 2013.

The Lumbog project alone, estimated to cost P818 million, has a mineable reserve of 1.39 million MT.

PNOC Exploration, meanwhile, approved the development of the Lower Butong and Sta. Barbara projects at a total cost of P1.35 billion. The Lower Butong and Sta. Barbara coal projects are covered by COC 41.

The Lower Butong has an expected mineable coal reserves of around 1 million MT. PNOC Exploration is set to drill around 10 to 15 holes this year to increase the level of confidence in the area.

The Sta. Barbara project, meanwhile, has the potential to contain 2 million MT of coal, which will be confirmed by drilling. Drilling of 30 holes in the area is slated for next year.