Semirara sees 50% coal output hike

SEMIRARA Mining and Power Corp. may increase coal production by half to 12 million metric tons in 2017 from the 7.89 million MT produced last year. This, after completing expansion work at its coal mine site in Antique province.

Company chair and CEO Isidro A. Consunji said in a text message that SMPC could see production reach 10 million MT this year and 12 million MT next year after expanding its coal mine at the Molave pit.

Besides the Molave expansion, the growth target also assumes favorable weather conditions for maximized operating days.

The impact of the Molave coal mine expansion would likely be felt fully in 2017, Consunji said.

Coal production at the expansion site is expected to start by August or September this year.

The Molave project is entitled to government incentives such as income tax holiday for four years from January 2017 or the actual start of commercial operations, whichever is earlier.

The mining company has secured a certificate of registration from the Board of Investments as a “new producer” of coal on a “non-pioneer status” for its Molave mine.

SMPC is working to remove the top layer of rock and soil in the area to expose the mineable ore, or strip mining, at the Molave coal mine. Strip mining is used to mine coal and other minerals when the ore body to be excavated is near the surface.

SMPC’s coal production and sales reached 7.98 million MT in 2015.  This was slightly higher than the 7.96 million MT production in 2014. This, despite the  two-month suspension of its coal mine operations as a result of an accident in July in the Panian site.

The Department of Environmental and Natural Resources (DENR), through the Environmental Management Bureau (EMB), issued to SMPC, has given an ECC dated Feb. 12 for the existing coal mining operations and proposed Molave project in Barangay Semirara. The ECC covers 3,825.25 hectares within the coal operating contract No. 5 awarded by the Department of Energy, which covers the 300-hectare Molave pit (West Panian) as well as other existing coal mining operations in the Panian and Narra pit (East Panian).

The DENR-EMB later issued an Amended Environmental Compliance Certificate dated April 29, 2016 for its Molave coal project. SMPC said the amended ECC covers “proposed expansion” in terms of mine area and output. The amended ECC increases the mine area of the Molave Pit (Western Panian) to 400 hectares from 300 hectares. The expanded site can host 1,100 housing units from the current capacity of 700 units.