Environmental compliance certificate covering Semirara mine suspended

Business World Online
Posted on July 24, 2015 09:04:00 PM

PUBLICLY LISTED Semirara Mining and Power Corp.’s environmental compliance certificate (ECC) covering its Panian Coal Mine in Antique has been suspended by regulators following last week’s tragedy that left nine workers dead.

It was the latest blow to Semirara, whose coal mining operations were earlier halted by the Department of Energy in the wake of a mine collapse incident last July 17.

On Friday, the listed miner told the exchange it is the Department of Environment and Natural Resources-Environmental Management Bureau (DENR-EMB) in Quezon City that issued a suspension order this time.

That latest order, dated July 21, temporarily shelves Semirara’s compliance certificate -- a clearance that the company’s project would not harm “environmentally critical areas” as defined under an almost four-decade old Presidential Decree (PD) 1586.

In suspending the ECC, the regulator noted that the mine collapse last July 17 -- the second since 2013 -- “is a manifestation of inability to address issues of safety which will inevitably lead to deterioration of environmental conditions.”

“It is alarming that a repetition of an incident that resulted in the loss of more lives happened,” according to the order signed by DENR Undersecretary and EMB Director Atty. Jonas R. Leones that was attached to a disclosure on Friday.

PD 1586, or the Environmental Impact Statement System, stipulates either a fine of P50,000 or the suspension or cancellation of the environmental compliance certificate for violators.

“On the side precaution, it is the opinion of this Office that there is a need to reexamine the stipulations made in the ECC and to make sure that all conditions including those that will be adjudged after the review shall be fully complied with,” DENR-EMB said.

“Therefore, the immediate suspension and reassessment of respondent’s ECC are necessary to arrest further adverse impact to the environment and prevent further loss of lives and limb,” it said, “Hence, given the seriousness of the subsequent offense committed, a penalty more commensurate thereto is warranted,” it further read.

Semirara shares were last traded at P120.10 each, up 1.78%, extending for a second day a recovery from a three-day losing streak. -- with KMPT source