Semirara suspends coal exports to avoid power supply disruptions

GMA Network News
July 22, 2015 3:37pm

The Semirara Mining and Power Corporation on Wednesday said it is suspending its coal export shipments to avoid disruptions in power supply following the temporary shutdown of its operations on Semirara Island in Antique.

In its official statement, the firm said the coal exports are to be halted "in reponse to the directive of the Department of Energy (DOE) to prioritize the requirements of domestic coal consumers."

Semirara said it shipped coal to its first export market, China, back in 2007. Since then, it has expanded its market base to include India, Hong Kong, Japan, Taiwan and Thailand.

"We have notified our foreign customers that we cannot schedule further shipments until DOE reaches a decision on the suspension of our mining operations," Semirara said.

The DOE has ordered the suspension of coal mining operations in Semirara pending the investigation on the collapse of its Panian mining pit Friday morning. Nine miners were killed in the tragedy.

DOE officer-in-charge Zenaida Monsada earlier ordered the formation of a panel to probe the incident. The panel will be headed by Assistant Secretary Raymond Acol.

Semirara also gave assurance that it will cooperate with concerned government authorities to avoid a possible supply disruption.

"The concerned government authorities have our full cooperation, and we will do everything we can to manage our limited coal inventory to avert possible supply disruptions to our local power plant and cement customers," it said.

Semirara is the biggest coal miner in the country and accounts for 92 percent of total Philippine production, according to the DOE.

Monsada had advised power plants to source their coal from other suppliers apart from Semirara.

Semirara still had about 520,000 metric tons of coal in stock, enough to supply power plants for three weeks.

"We hope we can be done before [mauubos yung stocks]. Kailangan talaga assured iyong safety [ng mining opearation]," Monsada earlier said in a 24 Oras report. — Kathrina Charmaine Alvarez/RSJ/VS, GMA News source