DOE lifts suspension order on SMPC mining operation

MANILA, Philippines — The Department of Energy (DOE) has finally lifted the suspension order on the mining operations of Semirara Mining and Power Corp. (SMPC).

In a disclosure to the Philippine Stock Exchange yesterday, SMPC said it received the official notice from the DOE lifting the suspension order and approving the resumption of mining operations.

However, the DOE’s notice did not cover the area adjacent of the former Casay Lake “until such time that all liquefiable materials in the area have been removed,” SMPC said.

The lifting of suspension follows the validation made by government on Semirara’s compliance after a mudslide incident occurred in its facility in Antique in October.

“In said correspondence, the DOE stated that the company substantially complied with all the conditions of its directive as specified in the DOE’s order dated Nov. 14, 2019,” SMPC said.

Earlier, Energy Undersecretary Donato Marcos said the agency conducted inspection on SMPC’s mine site to validate the company’s compliance with the conditions for lifting the suspension order.

The DOE made a recommendation to reorganize its safety department to include a safety consultant.

It also directed the company to identify the risk areas to come up with a mining methodology for those areas.

The DOE suspended SMPC’s mining operations after a mudflow incident in Semirara Island, Antique Province on Oct. 2.

While the suspension of mining activities will dent the company’s coal production, Semirara earlier said it has already met its output target for the year.

The firm expects opportunity loss in production per day to reach 40,000-45,000 metric tons (MT).

To-date, the company’s total production is already at 14.5 million MT, which is 12 percent higher than total 2018 production of 12.9 million MT.

Meanwhile, coal shipment already reached 14.6 million MT, a 26 percent rise from 11.5 million MT total shipment last year.

This is not the first time a landslide incident happened in SMPC’s mine site. In 2013, a landslide in Semirara’s Panian Pit also injured and killed some mining workers.