Friday, March 26, 2021

DoE fines Semirara over coal trading violations, decides against suspension

March 25, 2021 | 7:38 pm

https://www.bworldonline.com/doe-fines-semirara-over-coal-trading-violations-decides-against-suspension/

 

THE DEPARTMENT of Energy (DoE) has fined Semirara Mining and Power Corp. (SMPC) P610,000 for violating coal trading accreditation and end-user registration rules, SMPC said in a disclosure.

The fine was determined in a resolution dated March 16. SMPC said it had received a copy of the resolution Thursday.

The DoE ruled that SMPC violated Section 3 of a department circular detailing the procedure for accrediting coal traders and registering coal end-users.

The department also said that it is “removing the penalty of one-month suspension of SMPC’s coal trader accreditation, with a warning that it should exercise more prudence and care in conducting its coal trading.”

The resolution was modified from one issued two years ago, which initially sought to suspend the company for a month after SMPC engaged in unauthorized coal trading in transacting with stevedoring and arrastre services which did not have permits to trade coal.

The earlier DoE resolution, dated Oct. 15, 2019, also prescribed a fine of P1.74 million to SMPC for “unabated and continuous coal trading despite suspension of its accreditation.”

SMPC had sought reconsideration of this earlier resolution.

“No person shall transport, convey, deliver, or otherwise move coal from one place to another without a valid CTP (coal transport permit) or STP (special transport permit) issued by the DoE,” the DoE said in its department circular detailing the guidelines.

Coal traders who do not follow the rules are subject to a fine of P10,000 for first offenses and P25,000 for succeeding offenses, according to the department circular.

“The DoE may further recommend the suspension or revocation of the business permit and/or closure of business establishment,” the department said.

SMPC told BusinessWorld Thursday that the firm “respects, and will abide by the decision of DoE.”

“After careful review of our accreditation process, we implemented the necessary measures to prevent similar incidents from happening again,” SMPC said in an e-mail sent through DMCI Holdings, Inc. Vice-President and Corporate Communications Officer Cherubim O. Mojica.

DMCI owns 56% of SMPC. — Angelica Y. Yang

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