DOE orders 1-month suspension of Semirara coal trading activities

MANILA,Philippines — The Department of Energy (DOE) has ordered a one-month suspension of the coal trading activities of Consunji-led Semirara Mining and Power Corp. (SMPC).

SMPC was found to have violated Department Circular 2012-05-0006 or the Guidelines on the Accreditation of Coal Traders and Registration of Coal End-Users.

The DOE resolution ordered SMPC to stop coal trading operations for one month or transacting with Gold Anchorage, which is in violation of Section 7.2 of the circular.

Gold Anchorage is an unaccredited coal trader.

Meanwhile, SMPC was also fined P1.735 million for violating Section 3 of the circular due to unabated and continuous coal trading despite suspension of its accreditation.

“The corporation shall file its motion to the DOE seeking reconsideration of the said resolution,” SMPC said.

“Moreover, considering that the said resolution is not yet final and executory, being subject to a motion for reconsideration, the company shall continue its coal trading activities to serve its existing customers,” the company said.

Last May 23, SMPC supplied coal to a buyer for a trial shipment of 4,768.73 metric tons (MT) as it tried to tap additional market.

At that time, the buyer had submitted and applied for a coal accreditation certificate with the DOE on April 5.

Under the rules, DOE will issue the certificate of accreditation and/or registration or reject the application within 15 working days from receipt thereof.

SMPC, however, said the buyer was unable to submit the said accreditation as it was still pending with the DOE on the shipment date, to which it discontinued its supply and trading.

But in an order dated June 4, the DOE directed SMPC to stop its coal trading activities and operations until further notice for violating the Guidelines on the Accreditation of Coal Traders and Registration of Coal End-Users.

SMPC made a request to hold in abeyance the implementation of the June 4 decision, to which the DOE deferred its coal trading suspension order.

It is the only vertically integrated energy company in the Philippines that mines its own fuel source – coal.

As the country’s largest coal miner, Semirara has two operating mines in the Semirara Island in Antique, which are the Molave and Narra Pits, where about 70 percent of its production is for local demand while the rest is for export.