Semirara Mining more than tripling capital base to P10 B

By Danessa Rivera (The Philippine Star) | Updated August 30, 2017 - 12:00am

http://www.philstar.com/business/2017/08/30/1733914/semirara-mining-more-tripling-capital-base-p10-b

MANILA, Philippines - Semirara Mining and Power Corp. (SMPC) is preparing itself for future investments after it secured regulatory approval to more than triple its authorized capital stock.

In a disclosure to the Philippine Stock Exchange yesterday, SMPC said it has secured Securities and Exchange Commission (SEC) approval to raise its authorized capital stock from P3 billion to P10 billion.

The increase will be divided into 10 billion shares with a par value of P1 per share.

“This is just converting excess retained earnings to equity,” SMPC CEO Isidro Consunji said in a text message.

SMPC said its board determined the increase in authorized capital stock is for the best interest of the company.

“The additional authorized capital will be used to maximize equity funding for future investment/expansion of the business that the board deems to be in the corporation’s best interest,” it said.

“It will permit the corporation to act urgently and appropriately on business opportunities and developments as they may arise in the future,” it added.

SMPC, the country’s largest coal producer, is raising its coal output to 16 million metric tons (MT) in its coal mines in Semirara Island, Antique in the next two to three years after its amended environmental clearance certificate (ECC) was approved.

Last year was a banner year for the company after it managed to achieve the highest coal production level of 11.9 million MT, which is already the maximum output of its coal mines.

Currently, it has two operating mines in the Semirara Island – the Molave and Narra Pits. It recently closed the operations of its Panian Pit.

Apart from operating coal mines, SMPC also generates electricity from its coal-fired power plants, namely the 2x300-megawatt (MW) Sem-Calaca Power Corp. (SCPC) plants and the 2x150-MW Southwest Luzon Power Generation Corp. (SLPGC) plants, both located in Calaca, Batangas.

The 30 year-old SCPC plants are undergoing rehabilitation to be able to run at full capacity with less carbon emissions once completed. On the other hand, SLPGC started operating in 2016.

The company is also working on another expansion, a 2x350-MW coal-fired power plant under St. Raphael Power Generation Corp., a joint venture with Meralco Powergen Corp.

Recently, SMPC and the Department of Energy (DOE) signed a memorandum of understanding (MOU) for the development of a 50-MW mine-mouth power plant in Semirara Island.

Under the deal, SMPC will construct an initial 50-MW mine-mouth plant and the National Transmission Corp. will build the transmission lines connecting the plant to neighboring off-grid islands.