Danessa Rivera (The Philippine Star)
- July 18, 2019 - 12:00am
MANILA, Philippines — The Department
of Energy (DOE) has deferred its coal trading suspension order on Consunji-led
Semirara Mining and Power Corp. (SMPC).
In a disclosure, SMPC said it
received a letter from the agency, granting its request to hold in abeyance the
implementation of its June 4 Cease and Desist Order (CDO) and suspension of its
coal trading accreditation.
The DOE, however, said the deferred
suspension order is effective for 30 days or until it resolves SMPC’s case.
The Consunji firm is also allowed to
continue its coal trading activities only on existing coal supply
contracts/agreements. Therefore, it cannot enter into new contracts.
SMPC should also faithfully comply
with all its commitments and obligations under its coal trader accreditation,
the DOE said.
In an order dated June 4, the DOE
directed SMPC to stop its coal trading activities and operations until further
notice for violating the guidelines on the accreditation of coal traders and
registration of coal end-users.
registration of coal end-users.
The violation stemmed from the
company’s trial shipment to a coal buyer in May.
Last May 23, SMPC supplied Semirara
coal to a buyer for a trial shipment of 4,768.73 metric tons (MT) “in order to
tap additional market with representation on the part of the buyer that it has
accordingly submitted and applied for a Coal Accreditation Certificate with the
DOE on April 5, 2019.”
Under the rules, DOE will issue the
Certificate of Accreditation and/or Registration or reject the application
within 15 working days from receipt thereof.
SMPC, however, said the buyer was
unable to submit the said accreditation as it was still pending with the DOE on
the shipment date, to which it discontinued its supply and trading.
The DOE ordered SMPC to submit its
verified answer allegedly for illegal coal trading operation in Pulupandan
Port, Pulupandan, Negros Occidental until July 7.
While it sent its verified answer to
the DOE with a prayer for the immediate lifting of the CDO/suspension and for
the non-imposition of any administrative fine, the company said it submitted Tuesday
“a rejoinder to DOE with a prayer to amend the conditions, which might limit
SMPC’s compliance to its commitment per DOE approved Work Program.”
SMPC is the only vertically
integrated energy company in the Philippines that mines its own fuel source –
coal.
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