Semirara sets P6.9-B capex for 2025
Consunji-led Semirara Mining and Power Corp. is increasing its capital spending for 2025, with the bulk earmarked to bolster its coal-based operations.
The integrated energy company said Saturday it allotted P6.9 billion in capital expenditures (capex) for this year, higher than the P6.6-billion estimated investment in 2024.
Semirara said that of the full amount, P5.8 billion would be injected into its coal operations, mainly for “refleeting initiatives and additional acquisition of mining and support equipment.”
Electricity-producing subsidiary SEM-Calaca Power Corp. will get P700 million, while Southwest Luzon Power Generation Corp. will secure P400 million.
“[The budget will be] for maintenance activities and initiatives to enhance fuel and feed systems,” Semirara said.
The group continues to be the largest coal producer in the country, while its power generation business has an installed capacity of 900 megawatts (MW) and around 700 MW more in the pipeline.
In a disclosure last week, Semirara said it kept to its maximum production for the third consecutive year. For 2024, its coal shipments reached a historic 16.5 million metric tons (MT), up from 15.8 million MT the previous year.
Demand from China
The robust coal shipments were driven by increasing demand from China, which jumped by 46 percent to 7.6 million MT.
The company also recorded boosted sales in the Philippines with domestic shipments hitting 8 million MT.
Aside from supplying fuel to subsidiaries’ power plants, it also provides production input to cement manufacturers.
Coal is used to heat raw materials in the pyro-processing stage of cement production.
“While we anticipate market prices to further normalize in 2025, we remain focused on strengthening our customer network and enhancing operational efficiencies to effectively support national energy security and meet the growing demand from the industrial and cement sectors,” Semirara president and chief operating officer Maria Cristina Gotianun earlier said in a disclosure.
