Monday, June 3, 2013

Semirara to spend P148M for coal exploration


Business World Online
Posted on June 03, 2013 10:20:58 PM


COAL MINER Semirara Mining Corp. plans to spend at least P148 million for the exploration in Oriental Mindoro, after it was awarded a coal operating contract under the fourth Philippine Energy Contracting Round (PECR 4), the company said in a disclosure yesterday.

  The company said it has received from the Energy department a copy of one of its new coal operating contracts dated April 29, “covering two parcels of coal-bearing land” with an aggregate area of 7,000 hectares located in the municipality of Bulalacao in Oriental Mindoro.

“The company has committed to spend not less than P148,170,900 for its work programs for the first two years in the conduct of geological investigation, geodetic survey, sub-surface exploration for the coal contract area,” Semirara said in its disclosure.

The firm further explained that the contract involves a two-year exploration phase starting from the effective date of contracts or from its signing and execution. Exploration period may be extended for another two years.

Semirara said that if coal reserves in commercial quantity exists, the company will be given up to 10 years of development and production phase, which also includes the period covered by the exploration phase. This phase can be extended for another 10 years.

The Energy department had offered 38 coal operating contracts under PECR 4. Last February, the department named firms that bagged 11 coal operating contracts under that contracting round.

Semirara won the auction for area 9 in Occidental Mindoro and area 25B in Sarangani.

Besides Semirara Mining, the other companies that bagged coal contracts were identified as: Altura Mining Philippines, Inc. for area 3 (Catanduanes); South Davao Development Corp. for area 8 (Occidental Mindoro); Empire Asia for area 18B in (Surigao del Sur); SKI Mining Corp. for area 19A (Agusan del Sur); Philippine National Oil Co.-Exploration Corp. for areas 19B, 29 and 30A in (Surigao del Sur and Zamboanga Sibugay); Mega Philippines, Inc. for area 23 (South Cotabato, Sultan Kudarat and Sarangani); and Blackstone Mineral Resources, Inc. for area 27 (Zamboanga Sibugay).

Semirara was incorporated in 1980 to explore, develop, and mine coal resources in Semirara island in Caluya, Antique. The company, through SEM-Calaca Power Corp., also owns and operates a 600-megawatt coal-fired power plant in Calaca, Batangas.

The company saw its net income decline by 41.62% to P1.01 billion in the first quarter from P1.73 billion in the same period last year. Revenues fell 11.16% to P5.68 billion from P6.36 billion, while cost of sales rose by 2.53% to P4.05 billion from P3.95 billion. Its shares shed P2.20 or 0.79% to close at P275.80 apiece yesterday from P278 each on Friday last week. -- Claire-Ann Marie C. Feliciano   source

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