Semirara allots P5 B to raise coal output

MANILA, Philippines -  Consunji-led Semirara Mining and Power Corp. is investing P5 billion in two years to raise coal output to 16 million metric tons (MT) in its coal mines in Antique, top company officials said yesterday.

The country’s largest coal miner was cleared to have a maximum coal production of 16 million MT under its amended environmental clearance certificate. The increased production could be reached in two to three years’ time, Semirara chairman and chief executive officer Isidro Consunji said in a briefing after the company’s stockholders’ meeting yesterday.

“We’re putting in additional conveyor system, additional equipment, a longer pier, and additional coal storage areas. Current infrastructure is already maxed out for 12 million MT,” he said.

Last year was a banner year for Semirara after it managed to achieve its highest coal production level of 11.9 million MT.

Consunji said the plan to increase coal mining capacity is in line with government’s thrust for power stability, optimal pricing of electricity and intensified infrastructure developments.

To allow the output hike, the company will be spending P2 billion this year and P3 billion next year, company chief finance officer Junalina Tabor said.

 “This year, we allotted P2 billion for the pier and conveyor line, in terms of mining equipment, that’s P3 billion,” she said, noting all equipment are imported.

Increasing coal production will be phased gradually since the company has to submit a work program to the Department of Energy.

 “We still need to file an amendment to the work program. Current work program is 12 million MT,” Consunji said.

For this year, the company submitted a work program indicating a target coal production output of 14 million MT.

 “We’re aiming 14 million MT this year. But maybe if we do 13 million MT, we should be happy because the weather is projected to be a little bit wet,”  Semirara president and chief operating officer Victor Consunji said.

The company is adding  Japan as  a new market for its coal shipments aside from China and Thailand, he said.