Semirara allowed to resume mining

Business World Online
Posted on September 21, 2015 11:57:00 PM

THE COUNTRY’S largest coal producer, Semirara Mining and Power Corp. (SMPC), has been allowed to resume mining in Antique, two months after an accident at the open-pit mine in that province that killed nine workers.

An engineer checks the mine site of Semirara Mining and Power Corp. in this undated photo on the company’s Web site. Semirara, which accounts for about 97% of the country’s coal supply, exports 60% of its production. -- www.semiraramining.com
The Consunji-led company said in a disclosure yesterday that it received a Sept. 17 order from the Department of Energy (DoE) that cited the listed firm’s substantial compliance with conditions set prior to the lifting in August of the July suspension order on the project’s environmental compliance certificate (ECC).

Such compliance resulted in “marked improvement in the level of safety in its mining operation,” according to the DoE order attached to the disclosure.

“In view of the foregoing and in consideration of the overall national interest, the DoE hereby approves the resumption of mining operations of coal operating contract no. 5...”

The company’s operations, it added, will still be monitored regularly by a DoE Investigation Committee (DoE-IC) in-charge of the incident.

SMPC accounts for about 97% of the country’s coal production of about 8-9 million metric tons each year. Around 60% of the company’s coal production is exported. The DoE last July also ordered Semirara to suspend coal export shipments “to prioritize the requirements of domestic coal consumers.”

SMPC’s coal fuels several power plants in Luzon and the Visayas with some 1,593 megawatts in cumulative capacity.

The company’s shares gained P2 or 1.46% to end P139 apiece yesterday, against the benchmark Philippine Stock Exchange index’s 39.5-point or 0.55% fall to a 7,092.41 finish and the 21.94-point or 0.19% fall to 11,238.43 of the mining and oil sectoral index to which SMPC belongs.

The department on Sept. 1 gave recommendations to SMPC following the landslide at the northern wall of the Panian Pit on Semirara Island. SMPC responded on Sept. 10, citing its compliance with the recommendations -- which was confirmed by the DoE-IC in a Sept. 16 site visit.

According to DoE-IC findings cited in the letter, SMPC suspended for three months the heads of the company’s Mine Truck and Shovel Operation Department; Mine Planning and Engineering Department; Safety, Health and Environment Department and Geology Department. The suspension will be served on rotation from September 2015 to June 2016 due to lean manpower.

SMPC is also hiring a safety consultant and submitted an upgraded mining protocol that spells out improvements planned for its mine site. The company also submitted an improved health and safety program for its miners and upgraded its safety organization through the hiring of additional engineers and installation of slope stability radar. “In addition, SMPC strengthened its organization structure by hiring competent technical personnel such as geotechnical engineers, hydrogeologist and mine planning engineer,” the DoE said.

SMPC also submitted a detailed mining plan that incorporates a geotechnical study and upgraded its alert and evacuation procedures.

Zenaida Y. Monsada, officer-in-charge for the Energy secretary, said last week that the DoE-IC’s probe found that weather was to be blamed for the accident.

Ahead of resumption of mine operations, the Department of Environment and Natural Resources (DENR) last month lifted the suspension on SMPC’s ECC for Panian mine -- its only project in operational phase.

SMPC had explained that the accidental collapse of the northern wall did not cause any negative impact on the environment and argued that the incident was beyond its control.

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

An earlier accident at the site -- involving the western portion of the Panian mine -- occurred in February 2013, leaving five workers dead and five more still missing.

The earlier accident led to the immediate suspension of mining at the entire site.

Two months later, the Energy department issued a clearance for operations at the mine’s northern portion to resume. -- Claire-Ann Marie C. Feliciano source