Sunday, August 3, 2008

Semirara to boost coal exports by 25%

The company, a unit of DMCI Holdings Inc., told the Philippine Stock Exchange it expects coal export sales to reach more than 2 million tons in 2009 from 1.6 million tons this year.
Semirara started exporting coal last year to reduce its dependence on local consumers, such as the country's largest power generation firm National Power Corp (Napocor).
In May, the company said it plans to spend P1.5 billion this year to acquire new equipment to help expand annual capacity by 500,000 tons starting this year to meet rising demand overseas.
Total Semirara coal sales for 2007 rose 72 percent to 3.575 million tons. Of this, 800,000 tons was exported to China, India and Hong Kong and the rest sold domestically.
Semirara intends to raise production by one million metric tons a year and double exports this year after it got an income tax holiday from the Board of Investments.Semirara vice chairman Isidro Consunji said in an interview yesterday that they have already spent $25 million to acquire more equipment to allow the company to raise production.He said production this year will be a little over 4 million MT from 3.5 million MT last year and up to over 5 million MT next year.Consunji explained that Semirara had been hesitant to raise production since the higher their profits are, the higher the rate of royalties and taxes they had to pay the government.He said this changed when the BoI granted them an income tax holiday for the next six years for production above 2.5 million metric tons.
Meanwhile, Semirara also expects to double export volume this year to 1.6 million MT from 800,000 MT in 2007. Consunji added that they may ship more than 2 million MT overseas next year.He said they have received proposals for coal supply agreements from Korea and Japan. Currently, Semirara's exports go to China and India which has strong demand and buyers there will absorb everything they can produce.
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Wednesday, July 2, 2008

Navy, DMCI conduct search operation for MV Lake Paoay

By Maricar M. Calubiran
Presidential Assistant for Panay and Guimaras Raul Banias said the Philippine Navy and the DM Consunji Inc. (DMCI) are currently conducting search operation  to locate M/V Lake Paoay after it capsized in the waters of Carles when Typhoon Frank hit Iloilo.
Banias said DMCI is exerting efforts to locate the sunken vessel being the one that chartered the cargo vessel. The cargo ship was chartered by the DMCI to transport coal from Semirara Island to Toledo in Cebu for its coal-fired power plant. The cargo ship left Semirara night of June 19.
DMCI has been chartering the service of Lake Paoay to ferry coal from Semirara to different point of destinations for almost 10 years. The cargo ship has a capacity of 500,000 tons. The DMCI has an emergency order of coal for the power plant in Cebu when the sea vessel went to Antique.
Banias did not elaborate on the manner of the search operation being undertaken in the town of Carles. Carles is 147.6 kilometers north of Iloilo. It is a coastal town with 33 barangays including island-barangays. The town has rich fishing grounds.
Banias said apart from the search operation effort, the DMCI assured the families of the fatalities of a financial assistance. He did not say on how much each family will receive as cash assistance. The cargo ship has some 24 crews.
Some of the bodies of the crews of MV Lake Paoay were recovered in the Masbate. It was not immediately known on how many of the crews were found dead.

Monday, June 30, 2008

DMCI unit seeks to double coal production

GMA News
July 30, 2008 3:45pm

MANILA, Philippines - Semirara Mining Corp., a unit of Consunji-owned DMCI Holdings Inc. , is looking to boost its coal production and exports this year, following tax perks given to it by the government.

Isidro Consunji, DMCI president, told reporters on the sidelines of the company's annual stockholders' meeting Wednesday that the company is looking to increase its coal production and exports by 1 million tons this year to a total of 4.5 million tons, and more than 5 million tons in 2009.

Consunji added that it is allotting $25 million for the capital expenditure of the Semirara. The amount will be mainly used to purchase equipment.

The mining unit of DMCI has been granted by the Board of Investments of an income tax break for six years and other perks such as zero tariff on equipment acquisition.

“[We] have to take advantage of this government support, the company is more encouraged to spend more for the improvement of [our] production capacity," he said.

Last year, the company has exported almost 800, 000 tons of coal, with China and India gobbling up most of its products. The rest went to Hong Kong.

“Contrary to rumors that [our] coal is of poor quality, China, India and Hong Kong are very well satisfied with [our] product," Consunji said.

For this year, the company is eyeing to double its exports by two-folds or up to 1.6 million tons, and over 2 million tons next year.

“Anything [we] could produce, China and India would definitely buy, that is how in demand coal is right now following its historically high price in the world market," he said.

At present, Semirara coal are selling between $65 to $75 a ton, and is nearing its various contract where coal is being pegged at $50 per ton.

“For the second half, [we] are confident to meet if not to surpass this export goal since the winter in China further spikes up the demand for coal," Consunji said. GMANews.TV source

Friday, May 23, 2008

Semirara coal operating contract extended 15 yrs

MANILA, Philippines- Semirara Mining Corp. on Thursday informed the Philippine Stock Exchange extend its coal operating contract for 15 years.

In a statement to the PSE, Semirara said the contract involved an area in Semirara Island, Caluya, Antique.

The original contract was set to expire on July 13, 2012 but now was extended until July 14, 2027.

Early, Semirara said it would be increasing its coal production by half-a-million metric tons this year as it takes advantage of rising demand by doubling its exports.

The company added that it would boost production capacity to as much as 5 million metric tons per year.

The expansion is part of the P1.5 billion allotted by the company for its 2008 capital expenditure.

Semirara, a unit of conglomerate DMCI Holdings, Inc., also aims to grow its export capacity from 800,000 metric tons to 1.6 million metric tons this year given increasing demand from local and foreign buyers. - Cheryl Arcibal, GMANews.TV