Semirara expects to obtain gov’t okay for new coal site
Semirara Mining and Power Corp. (SMPC), the country’s largest coal producer, expects to secure a government clearance for a new mining site by the second half as it pursues its P291-billion expansion.
SMPC president, chief operating officer and chief sustainability officer Maria Cristina Gotianun said they were just awaiting the release of an environmental compliance certificate (ECC) for the Acacia Mine from the Department of Environment and Natural Resources.
Developers need to secure an ECC as this permit certifies that the activity will not negatively impact the environment.
“Exploration and pre-stripping activities are currently underway with production targeted to begin within 2026,” she said at the company’s annual stockholders’ meeting yesterday, May 5.
According to the group, the Acacia Mine holds approximately 80 million metric tons of coal reserves.
The Consunji-led firm is also hopeful the DOE would act on amending its coal operating contract covering the Semirara Island, which is set to lapse in 2027.
“We hope to obtain this within the year,” SMPC chair and chief executive Isidro Consunji said.
Lower coal prices
The contract allows SMPC to launch exploration and development activities, as well as coal mining operations.
SMPC said the changes would focus on “the adjustment of the term when coal operations were under government control.”
SMPC continued to suffer from lower coal prices as its profit in the January to March period dropped by 33 percent. In a disclosure last week, the company said its net income declined to P4.4 billion from P6.5 billion.
While coal production climbed by 16 percent to 5.7 million metric tons (MT), average selling price decreased to P2,481 per MT from P2,978 per MT. SMPC said this showed normalizing market prices and stronger demand for lower-grade coal.
