Tuesday, July 21, 2015

Consunji stocks take beating after Semirara mine incident

By Danessa O. Rivera (The Philippine Star) | Updated July 21, 2015 - 12:00am

MANILA, Philippines - Stocks of Consunji-led firms took a beating yesterday after a tragic landslide in its open-pit coal mine on Semirara Island in Caluya town, Antique that buried nine workers last week.

Semirara Mining and Power Corp., the country’s largest coal miner, said seven out of the nine fatalities have been recovered from the site.

“Our 24/7 search and retrieval operations continue. We have been cooperating fully with government authorities investigating the accident,” it said.

Meanwhile, the company noted officials from the Department of Energy (DOE) conducted an initial investigation last Saturday and are expected to make a follow-up today.

Semirara shares dropped 13.64 percent to P123.50 each share yesterday from P143 per share last Thursday.

The Philippine Stock Exchange implemented a trading halt on Semirara from 9 a.m. to 10 a.m. yesterday following the unfortunate incident.

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“In order to give the investing public sufficient time to digest the material information disclosed by the company, the Exchange will implement a one hour trading halt on SCC shares,” the PSE said.

Meanwhile, the share price of DMCI Holdings Inc., which owns 56 percent of Semirara, lost 7.7 percent to close at P12.46 apiece yesterday from P13.50 per share.

On July 17, the coal miner said a part of the northern edge of Panian mine caved in at around 3:45 a.m. burying nine coal mine workers.

Panian is one of the open-pit mines in the 55-square kilometer area in Semirara Island, apart from the Unong mine which ceased operations in 2000.

The DOE had immediately suspended mining operations temporarily.

Semirara said the needs of the families of the victims remains a priority, facilitating the life and accident insurance claims and other expenses of the victims.

“We have sought the assistance of religious nuns and professional counselors to help the bereaved cope with their loss,” it said.

“On top of the immediate release of additional funds to cover their transportation costs and other incidental expenses, we are providing P1 million to each of the nine grieving families,” it added.

Apart from the cash grant, the education expenses of the children of the victims will be shouldered until college and jobs will be provided to them once they are already of employment age.

Semirara said it would also pay for the all the funeral expenses and provide free permanent housing in Semirara Island or housing assistance elsewhere.

“We continue to pray for the families as they go through this difficult time. We are committed to providing them with the support they need to rebuild their lives,” the company noted.

The immediate families would be flown to Semirara Island starting today and two of the bodies would be flown back to their hometowns within the next 48 hours, it said.

This is not the first time the mining firm had a similar fatal incident.

In a daily research note, DA Market Securities Inc. said this is the same situation that happened in 2013, when a landslide also occurred at the Semirara mine site in Caluya town.

The landslide trapped 13 miners, of which three personnel were rescued.

“Investors may expect a sell-off similar to the February 2013 incident. At the time, the stock corrected 10.5 percent before registering a double bottom,” it said.

Last month, DMCI shares also took a hit after the Supreme Court issued a temporary restraining order against the construction of the high-rise Torre de Manila that spoils the skyline behind the Rizal Monument. source

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