By
Lenie Lectura - July 11, 2019
SEMIRARA Mining and
Power Corp. (SMPC) has asked the Department of Energy (DOE) to lift the
cease-and-desist order (CDO) imposed on its coal trading operations.
The DOE said SMPC
violated the guidelines on the Accreditation of Coal Traders and Registration
of Coal End-Users.
SMPC was told to submit
its verified answer allegedly for illegal coal trading operation in Pulupandan
Port in Pulupandan, Negros Occidental, until July 7. At the same time, a
CDO to SMPC’s coal trading activities and operations was issued by the
agency.
The Consunji-led firm
said Wednesday that it wrote the DOE last July 5 to ask the DOE to immediately
lift the CDO/suspension and to not impose any administrative fine.
SMPC supplied Semirara
coal to a buyer on May 23 for a trial shipment of 4,768.73 metric tons in order
to tap additional markets, with representation on the part of the buyer that it
has accordingly submitted and applied for a Coal Accreditation Certificate with
the DOE on April 5.
Under the rules, the DOE
will issue the Certificate of Accreditation and/or Registration or reject the
application within 15 working days from receipt thereof.
On shipment date, the
buyer was unable to submit the said accreditation as it was still pending with
the DOE. Thereafter, SMPC stopped doing business with the buyer.
“In order not to
interrupt SMPC’s ongoing operation and renege on its contractual commitments to
its coal buyers, SMPC have requested reconsideration of the DOE order and that
the implementation thereof be held in abeyance pending resolution of the
alleged violation, and allow SMPC to proceed and continue its current trading
activities and operations,” said SMPC. The company said there is an ongoing
discussion with the DOE to have this matter resolved immediately and that it
does not expect the incident to have any material effects on its business,
financial condition and operations.
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