| By Donnabelle L. Gatdula (The Philippine Star) Updated January 11, 2011 12:00 AM |
MANILA, Philippines - DMCI Holdings Inc. plans to keep its coal production steady this year to ensure reliable supply of coal for its own power plants.
DMCI Holdings president Isidro Consunji said their coal exploration unit, Semirara Mining Corp., is eyeing to produce between six to seven million metric tons of coal this year.
Semirara, the country’s largest local coal company, is engaged in the exploration, mining, development and sales of coal resources. It supplies coal to the 600-megawatt Calaca coal plant in Zambales, now owned by DMCI.
The Philippines has other coal mines located in Cebu, Zamboanga Sibugay, Albay, Surigao and Negros. Total coal production is expected to reach 9.47 million metric tons in the next five years.
Consunji said this production level would be relatively about the same level as last year, depending on weather conditions
He said the company is optimistic coal prices will improve as supply stabilizes.
Prices of coal recently shot up as demand increased substantially due to the flooding in Australia, one of the world’s largest coal producers.
“Coal prices improved 15 to 20 percent higher than last year but this may be for the short-term only,” Consunji said.
Semirara’s production has been improving from about 3.379 million metric tons in 2009 to over five million metric tons as of the third quarter of 2010.
Semirara supplies coal to local industries, cement companies, power firms and to foreign markets.
Consunji said they are currently developing and exploring a number of coal sites to be able to address the increasing demand for coal.
Earlier, the Department of Energy (DOE) awarded contracts to Semirara Mining to explore for coal covering 24 blocks in the Caluya and Sibay islands in Antique.
The new areas for exploration are covered by its coal operating contract which includes a land area of 3,000 and 4,200 hectares in Caluya and Sibay, respectively.
Semirara’s original coal contract covered only 5,500 hectares in Semirara Island.
DMCI Holdings president Isidro Consunji said their coal exploration unit, Semirara Mining Corp., is eyeing to produce between six to seven million metric tons of coal this year.
Semirara, the country’s largest local coal company, is engaged in the exploration, mining, development and sales of coal resources. It supplies coal to the 600-megawatt Calaca coal plant in Zambales, now owned by DMCI.
The Philippines has other coal mines located in Cebu, Zamboanga Sibugay, Albay, Surigao and Negros. Total coal production is expected to reach 9.47 million metric tons in the next five years.
Consunji said this production level would be relatively about the same level as last year, depending on weather conditions
He said the company is optimistic coal prices will improve as supply stabilizes.
Prices of coal recently shot up as demand increased substantially due to the flooding in Australia, one of the world’s largest coal producers.
“Coal prices improved 15 to 20 percent higher than last year but this may be for the short-term only,” Consunji said.
Semirara’s production has been improving from about 3.379 million metric tons in 2009 to over five million metric tons as of the third quarter of 2010.
Semirara supplies coal to local industries, cement companies, power firms and to foreign markets.
Consunji said they are currently developing and exploring a number of coal sites to be able to address the increasing demand for coal.
Earlier, the Department of Energy (DOE) awarded contracts to Semirara Mining to explore for coal covering 24 blocks in the Caluya and Sibay islands in Antique.
The new areas for exploration are covered by its coal operating contract which includes a land area of 3,000 and 4,200 hectares in Caluya and Sibay, respectively.
Semirara’s original coal contract covered only 5,500 hectares in Semirara Island.
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