Danessa Rivera (The Philippine Star)
- July 12, 2019 - 12:00am
MANILA, Philippines — Semirara
Mining and Power Corp. (SMPC) has asked the Department of Energy (DOE) to lift
the suspension order on its coal trading activities.
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.
The company was also ordered to
submit its verified answer allegedly for illegal coal trading operation in
Pulupandan Port, Pulupandan, Negros Occidental until July 7.
“On July 5, 2019,
SMPC submitted its verified answer to the DOE with a prayer for the immediate
lifting of the cease and desist order/suspension and for the non-imposition of
any administrative fine. There is likewise an ongoing discussion with the DOE
to have this matter resolved immediately,” SMPC said.
It has appealed to the
DOE to allow the company to continue with its operations until the violation
issue is resolved.
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.
“Unfortunately,
on shipment date, the buyer was unable to submit the said accreditation as it
was still pending with the DOE. Thereafter, SMPC discontinued its supply and
any trading with said buyer,” the company said.
SMPC said it does not
expect any material effects on its business, financial condition and
operations.
SMPC is the only
vertically integrated energy company in the Philippines that mines its own fuel
source, coal.
As the country’s largest
coal miner, Semirara has two operating mines in the Semirara Island in Antique,
which are the Molave and Narra pits, where about 70 percent of its production
for local demand, while the rest is for export.
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