July 17, 2019 | 12:03 am
SEMIRARA Mining and
Power Corp. (SMPC) said the Energy department had granted the request of the
Consunji-led listed company to put on hold an order issued last month for the
suspension of its coal trading activities.
In a disclosure to the
stock exchange, the company said the Department of Energy (DoE) sent a letter
putting on hold for 30 days the implementation of the agency’s June 4 cease and
desist order and suspension on its coal trading activities.
The deferred order is
to start on Tuesday or until the DoE has resolved the company’s verified
answer, whichever comes earlier.
“SMPC shall continue
its coal trading activities only on existing coal supply contracts/agreements,”
the company said, quoting the conditions set in the department’s letter.
“SMPC shall not enter
into new coal supply contracts/agreements,” it added.
The company should also
“faithfully comply with all its commitments and obligations under Coal Trader
Accreditation No. CT-208-12-0351(R).”
Last week, SMPC
disclosed that it was in talks with the Energy department for the lifting of
the cease and desist order on its coal trading activities after issues arose
when a buyer failed to produce the required accreditation.
The company narrated
the background of the case, which started on May 23, 2019 with the supply of
Semirara coal to a buyer. The trial shipment of 4,768.73 metric tons (MT) was
aimed at tapping additional market with representation on the part of the buyer
that it has submitted and applied for a coal accreditation certificate with the
DoE on April 5, 2019.
Under the rules, the
DoE will issue the certificate of accreditation and/or registration or reject
the application within 15 working days from receipt.
“Unfortunately, on
shipment date, the buyer was unable to submit the said accreditation as it was
still pending” with the DoE, SMPC said. “Thereafter, SMPC discontinued its
supply and any trading with said buyer.”
On July 5, 2019, SMPC
said it had submitted its verified answer to the DoE with a prayer for the
immediate lifting of the cease and desist order/suspension and for the
non-imposition of any administrative fine.
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