Philex Petroleum Corp. on Monday said its subsidiary was closing a coal mine operation in Mindanao as it turned out to be unprofitable due to high operating costs and low product prices.
In a disclosure to the Philippine Stock Exchange, Philex Petroleum said Brixton Energy and Mining Corp. would shut down its coal mine in Diplahan, Zamboanga Sibugay.
The underground mining operations under Coal Operating Contract No. 130 had been suspended since Jan. 1 this year, Philex Petroleum said.
This is due to “negative margins” brought about by high operating costs and the substantial drop in regional coal prices last year, the parent firm said.
Philex Petroleum said it had informed the Department of Energy of the mine closure.
Brixton Energy and Mining Corp. is a wholly owned subsidiary of Philex Petroleum, whose first-half losses grew due to foreign currency conversion losses on the company’s dollar-denominated advances from parent firm Philex Mining Corp.
Philex Petroleum reported a net loss of P225.2 million for the six months of the year, bigger compared to a net loss P80.5 million in the same period in 2012.
The upstream oil and gas company of the Philex group directly and indirectly owns oil and gas exploration and production assets in the Philippines and indirectly owns exploration assets located in Peru.