Semirara sets plans to double power-generation capacity

business mirror

TUESDAY, 21 JUNE 2011 19:47 MIGUEL R. CAMUS / REPORTER

SEMIRARA Mining Corp., the listed mining and power subsidiary of Consunji-led DMCI Holdings Inc., is moving forward with a plan to double its existing power-generation capacity to be handled by a new subsidiary.

Semirara told the Philippine Stock Exchange on Tuesday that its board has approved additional investments for a 600-megawatt (MW) power plant adjacent to its existing 600-MW coal-fired power plant in Calaca, Batangas. Semirara plans to build the facility in stages and will comprise four units of 150 MW circulating fluidized bed power plants.

The said project will be carried out through a wholly owned subsidiary to be incorporated with the Securities and Exchange Commission, Semirara said.

Earlier this month, Semirara vice chairman Isidro Consunji said the company will likely pursue the initial stages of expansion by itself, as opposed to earlier plans that involved tapping a strategic partner. 

Consunji had said talks with partners that involved Manila Electric Co. and Japanese trading powerhouse Marubeni Corp. have progressed slower than expected.  He said the company may tap BDO Capital Investment Corp. to help with the financing requirement for the project, given that early estimates pegged the development cost of the entire project at $900 million.

Semirara expects profits to rise to 40 percent this year to P5.6 billion due to higher coal prices and improved power output from the ongoing rehabilitation of its existing power plant, the company said last month.  Revenues are forecast to increase by a third to P30 billion, with the coal business expected to contribute close to 70 percent and the remainder from power.  Semirara shares slid 3.88 percent to P208.20 each on Tuesday’s close.