Semirara Mining Corp., a unit of DMCI Holdings Inc., expects coal production to reach 6 million to 7 million metric tons this year, an official said Monday.
DMCI Holdings president Isidro Consunji said this year’s target would approximate the output in 2010.
“[Production is] same level as last year’s, depending on the weather,” Consunji said.
He said while production levels would remain steady, coal prices had improved.
Coal prices rose recently due to higher demand amid flooding in Australian mines. Australia is one of the world’s largest coal producers.
“Coal prices improved, 15 to 20 percent higher than last year but may be this is short term only,” Consunji said.
Semirara has been steadily increasing production in the past several years. Production was just around 3.379 million MT in 2009 before rising to over five million MT in the third quarter of last year.
Semirara sells its production to local industries, cement companies, power firms and to foreign markets.
The company is exploring for more coal resources to address continuing demand.
The Energy Department earlier allowed Semirara Mining to explore 24 blocks in Caluya and Sibay islands in Antique.
The new areas are covered by the second amendment of the firm’s coal operating contract no. 5, which includes a land area of 3,000 and 4,200 hectares in Caluya and Sibay islands, respectively.
Semirara’s original coal contract covered just 5,500 hectares in Semirara Island.
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