Semirara looks to boost coal sales this year

By Iris Gonzales (The Philippine Star) | Updated November 19, 2015 - 12:00am
http://www.philstar.com/business/2015/11/19/1523363/semirara-looks-boost-coal-sales-year

MANILA, Philippines - Semirara Mining and Power Corp. expects its sales to reach 9.5 million metric tons this year given the strong growth in the power and construction sectors.

Victor Consunji, president and COO of Semirara Mining, said of the expected 9.5 million MT, 5.2 million would account for domestic sales. This is 41 percent higher compared to the previous year.

Domestic sales account for 51 percent of the company’s total coal deliveries.

The company aims to sustain the upward trajectory with domestic sales seen to hit seven to eight million MT in 2016 or an increase of 35 to 54 percent.

“We want to focus on local consumers to contribute to the development of our country. Buying local eliminates foreign exchange risks and helps stabilize production costs in the power and cement industries,” Consunji said.

The increase in cement production will come from the continued boom in construction from both private- and public-led projects.

According to Semirara Mining, majority of the coal used by local power and cement producers come from Indonesia, China and Australia.

The expected growth in the power industry will come from new capacity.

As of October this year, the Department of Energy recorded 3,417 megawatts of committed capacity from private sector-funded thermal power plants.

These power generation facilities will be put up across the country and are expected to come online within the next two to three years.

The continued pick-up in construction activities, meanwhile, is pushing cement companies to boost their production capacity.

Because of the expected growth, cement companies are expanding their facilities.

Eagle Cement, for instance, has plans to build new cement manufacturing facilities in Cebu and Davao.

Likewise, Holcim Philippines intends to expand its production capacity in Bulacan.

Another company, Lafarge Republic, already expanded the capacity of its cement plant in Teresa, Rizal by half.

In the third quarter of 2015, cement sales rose 18.6 percent, according to the Cement Manufacturers Association of the Philippines.

Semirara Mining is the largest coal producer in the Philippines and the only power generating company in the country that produces its own fuel. It currently provides 24 percent of the domestic coal supply.