Semirara coal production seen reaching 6-7M tons this year

business mirror
MONDAY, 10 JANUARY 2011 20:53 PAUL ISLA / REPORTER

SEMIRARA Mining Corp.’s coal production at the Semirara coal field is seen to reach 6 million to 7 million tons this year, according to Isidro Consunji, DMCI Holdings Inc. president.

He said the production targets of Semirara, the coal-exploration arm of DMCI, are “expected to be at the same level as last year depending on the weather.”  

He added that coal prices improved even as production levels remained steady. “Coal prices improved 15 percent to 20 percent higher than last year,” said Consunji, adding that the increase in coal prices could be temporary or short term only.

Consunji pointed out that coal prices increased owing to higher demand due to the effect of the flooding of the Australian coal mines, in aggregate one of the world’s largest coal producers. Over the past years, Semirara has been steadily increasing production. In 2009 production was around 3.379 million tons but increased to 5 million tons in the third quarter last year.

Semirara sells its production to local industries, cement companies, power firms, and to foreign markets.

The Department of Energy (DOE) earlier allowed Semirara Mining to explore for coal covering 24 blocks in Caluya and Sibay islands in Antique. The new areas for exploration are covered by the second amendment of its coal operating contract No. 5, which includes a land area of 3,000 in Caluya and 4,200 hectares in Sibay. Its original coal contract covered only 5,500 hectares on Semirara Island.

The DOE extended  by 15 years Semirara’s coal-operating contract in Antique to July 24, 2027, instead of July 13, 2012. The contract covers 13 blocks on Semirara Island, Caluya, Antique.