By Lenie Lectura - November 22, 2019
SEMIRARA Mining and Power Corp.
(SMPC) said Thursday it filed a motion for reconsideration (MR) with the
Department of Energy (DOE) to lift the coal trading suspension imposed on the
Consunji-led firm.
“SMPC filed its motion for
reconsideration with the DOE yesterday, November 20,” it said in a disclosure
to the stock exchange.
The agency earlier ordered the
suspension of all mining activities under Coal Operating Contract 5.
Separately, the DOE said the company
violated DOE Circular DC2012-05-0006, or the Guidelines on the Accreditation of
Coal Traders and Registration of Coal End-Users. It issued a resolution
directing the company to suspend coal trading with Gold Anchorage Stevedoring
and Arrastre Services for one month. It also imposed a P1.735-million fine
against the company.
“We would also like to stress that
the DOE Resolution dated October 15, 2019, is not yet final and executory. Our
pending motion temporarily defers the implementation of the coal trading
suspension, which would allow SMPC to continue serving its coal customers.
“With respect to the DOE Suspension
Order dated November 14, 2019, SMPC is completing the requirements to comply
with the conditions stated therein. We intend to reply to the DOE by Friday,
November 22, to address their requirements,” the company said.
The company gave assurances that it
is focused on complying with all the directives of the DOE so it can
resume operations at the soonest possible time.
“Upon receipt of our submitted
documents, the DOE shall evaluate our submissions for approval. We estimate
that this will take around 15 days. However, this timetable could change
depending on the review process of the DOE,” it added.
The DOE orders of suspension will
result in opportunity loss in production per day from 40,000-45,000 metric tons
(MT). But the company’s total production is already at 14.5M MT, which is 12
percent higher than total 2018 production of 12.9M MT. Moreover, coal shipment
already reached 14.6M MT, 26 percent higher compared to the 11.5M MT total
shipment in 2018.
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