Semirara Mining Corp., the country’s biggest coal producer, is expecting a 15-percent growth in its consolidated net income this year, from the P6 billion profit level it registered in 2011.
At the sidelines of last week’s Euromoney Conference, Semirara Mining chief executive Isidro A. Consunji said growth would come from the increase in electricity sales as a result of more efficient power facilities.
Although power prices at the wholesale electricity spot market (WESM) may be reduced this year, the expected La Niña weather disturbance will enable hydropower facilities to operate at optimized levels, Consunji explained.
Semirara Mining earlier acquired from the government the 600-megawatt Calaca coal plant in Batangas. The power units are being rehabilitated to increase efficiency levels. As such, the company expects its power plant to “produce more power this year than last year,” Consunji added.
As for its coal business, Semirara Mining expects flat production growth of 7 million metric tons this year.
“Last year, we sold more coal locally because the local demand is improving,” he noted.
This year, the company is well prepared financially for the construction of its $450-million 300-megawatt coal facility, an expansion of its Calaca facility, Consunji said.
Through its wholly owned subsidiary Southwest Power Generation Corp., Semirara Mining will build the 300-MW facility to be located beside the existing Calaca plant, which is owned and operated by SEM Calaca Power Corp., also a wholly owned subsidiary of Semirara Mining.