SEMIRARA Mining and Power Corp. (SMPC) said domestic coal sales will increase as it expands its power business and focuses on local deliveries.
Semirara said in a statement Tuesday that it expects domestic coal deliveries to the power, cement and other industrial sectors to reach 5.2 million metric tons by year-end, up 41 percent. Domestic sales account for 51 percent of the company’s total coal deliveries.
The company plans to continue its upward sales trajectory in 2016, estimating a 35 percent to 54 percent increase to between seven and eight million MT in domestic sales, it added.
Majority of the coal used by local power and cement producers come from Indonesia, China and Australia.
As of October this year, the Department of Energy has 3,417 megawatts of committed capacity from private sector-funded thermal power plants. Located across the country, the power generation facilities are expected to come online within the next two to three years.
Meanwhile, the continued pick up in construction activities is pushing cement companies to boost their production capacity.
According to the Cement Manufacturers Association of the Philippines, cement sales rose 18.6 percent in the third quarter of 2015.
SMPC is the largest coal producer in the Philippines and the only power generating company in the country that produces its own fuel. It currently provides 24 percent of the domestic coal supply.