DoE slaps penalty vs Semirara Mining

By Jordeene B. Lagare March 26, 2021
https://www.manilatimes.net/2021/03/26/business/business-top/doe-slaps-penalty-vs-semirara-mining/855488/

The Department of Energy (DoE) has imposed a monetary penalty on Semirara Mining and Power Corp. for unauthorized coal trading.

The DoE affirmed its previous resolution that the Consunji-led company violated Section 3 of Department Circular 2012-05-0006 or Guidelines on the Accreditation of Coal Traders and Registration of Coal End-Users.

“No person, partnership, cooperative or corporation shall engage in the trading or utilization of coal within the Philippines, unless duly accredited or registered, respectively, with the DoE within the periods set forth in the succeeding section,” the circular read.

But the agency reduced the company’s fine to P610,000 for violating the aforementioned directive.

The DoE, in its Mar. 16, 2021 resolution, stated it is removing the penalty of one-month suspension of Semirara Mining’s coal trader accreditation, “with a warning that, henceforth, it should exercise more prudence and care in conducting its coal trading related transactions in order to avoid similar issues and cases in the future.”

The agency, in its letter dated June 4, 2019 and its subsequent letter dated July 4, 2019, slapped Semirara Mining with a cease and desist order on its coal trading activities as well as suspended the listed firm’s coal trader accreditation.

However, the Energy department deferred the suspension of Semirara Mining’s coal trading operations, provided that the latter continues its coal trading activities only on existing coal supply contracts/agreements.

The DoE, in its Oct. 15, 2019 resolution, found Semirara Mining in violation of the said department circular.

As a result, the company was given a one-month suspension for violating Section 7.2 of the said circular due to coal trading or transaction with Gold Anchorage, the latter being an unaccredited coal trader.

The DoE likewise imposed a penalty of P1.735 million for unabated and continuous coal trading despite suspension of its accreditation.

Semirara Mining then filed a motion for reconsideration of the DoE ruling but the department modified its previous resolution.

To recall, Semirara Mining supplied 4,768.73 metric tons (MT) to Gold Anchorage Stevedoring and Arrastre Services, Inc. as a trial shipment.

The buyer had assured Semirara Mining it submitted and applied for a coal accreditation certificate with the DoE.

Unfortunately, on the shipment date, the buyer was unable to submit the said accreditation as it was still pending with the DoE at that time. This prompted Semirara Mining to discontinue its supply and any trading with the buyer.

Semirara Mining shares climbed by P1.32 or 11 percent to end at P13.32 each on Thursday.