Semirara Mining hikes capex to P13 B

Iris Gonzales (The Philippine Star) - March 16, 2018 - 12:00am

https://www.philstar.com/business/2018/03/16/1797063/semirara-mining-hikes-capex-p13-b

MANILA, Philippines — Semirara Mining and Power Corp. (SMPC), the integrated energy company of the Consunji Group, is hiking its capital spending to P13 billion this year, up 62 percent as part of efforts to extend the operating life of its power assets.

Of the P13 billion, more than half or P7 billion would go to  the company’s subsidiaries, Sem-Calaca Power Corp. (SCPC) and Southwest Luzon Power Generation Corp. (SLPGC).

Around P4.7 billion or roughly $90 million will be spent on the life extension program of the 2x300 MW conventional power plants of SCPC this year, officials said.

The remaining P2.3 billion, will be used to fund the regular maintenance capex for both power assets.

SMPC president and chief operating officer Victor A. Consunji said funding would come from internally generated funds and medium to long-term loans.

On top of the P13 billion capex, SMPC is also investing P6 billion to acquire dump trucks, excavators and other support equipment for its advance stripping operations, which will also be covered by internally generated cash.

SMPC needs additional heavy equipment to move more overburden materials.

These materials will be used to accelerate the final rehabilitation of its South Panian pit, Consunji said.

 “We plan to totally fill the southern portion of the Panian pit within the next two years so it becomes a stable landform. After that, we will undertake a massive reforestation program in the area to restore its ecological balance,” he said.

The Panian pit was closed in September 2016 following the depletion of its mineable coal reserves. SMPC has since moved its extraction operations to its new mine sites, Molave and Narra.

SMPC’s Net income contribution to parent firm DMCI Holdings Inc.  jumped 15 percent to P8 billion due to the 20 percent increase in average coal prices and 21 percent increase in gross electric output.

The average selling price of coal  increased 20 percent year-on-year to P2,268 per ton.