MANILA, Philippines - After suspending its coal operations in Zamboanga in January, the group of businessman Manuel V. Pangilinan has decided to just shut down the mine.
In a disclosure to the Philippine Stock Exchange yesterday, Philex Mining Corp. said its wholly-owned subsidiary Brixton Energy and Mining Corp. (BEMC) would proceed with the closure of its coal mine in Diplahan, Zamboanga Sibugay under Coal Operating Contract 130 (COC 130).
“The underground mining operations in COC 130 has been suspended since Jan. 1, 2013 due to negative margins resulting from the high operating costs and the substantial drop in regional coal prices in 2012,†Philex said.
The company has already informed the Department of Energy of decision to close the mine.
Since it suspended the coal mine operations in January, BEMC reviewed the operations and prospects of the coal mining project.
However, after a thorough review and on the back of the oversupply of coal in the global markets, which has pulled world coal prices down, BEMC decided to shut down the plant.
Philex reported a net income of P954 million in the first six months of the year, down from P2.036 billion in the same period last year, after the company started operating its Padcal mine only in March after a voluntary closure since August 2012.
In the second quarter alone, Philex reported 12 percent lower income of P551 million from P768 million a year ago, due to lower metal prices of gold and copper.
In 2012, Brixton Energy wrote off P578 million of its coal assets under COC 130 in Zamboanga.