P148M plans to spend by a mining firm for coal exploration in Oriental Mindoro

By JUANCHO R. MAHUSAY

CALAPAN CITY – At least P148 million is being planned to spend by coal miner Semirara Mining Corp. for their exploration activities in Oriental Mindoro, after the company was awarded a coal operating contract under the fourth Philippine Energy Contracting Round (PECR 4) by the Department of Energy.

In the recent company disclosure, Semirara Mining stated it has received from the DOE a copy of one of its new coal operating contracts dated April 29, “covering two parcels of coal-bearing land” with an aggregate area of 7,000 hectares, located in the municipality of Bulalacao in Oriental Mindoro.

“The company has committed to spend not less than P148,170,900 for its work programs for the first two years in the conduct of geological investigation, geodetic survey, and sub-surface exploration for the coal contract area,” Semirara said in its disclosure.

The company further explained that the contract involves a two-year exploration phase starting from the effective date of contracts or from its signing and execution, noting that exploration period may be extended for another two years.

Semirara Mining explained that if coal reserves in commercial quantity exist, the company will be given up to 10 years of development and production phase, which also includes the period covered by the exploration phase.  This phase can be extended for another 10 years.

The energy department had offered 38 coal operating contracts under PECR 4.  Last February, the department named firms that bagged 11 coal operating contracts under that contracting round.

Semirara won the auction for area 9 in Occidental Mindoro and area 25B in Sarangani province.

It was also learned that besides Semirara Mining, the other company that bagged coal contract in MIMAROPA areas is South Davao Development Corporation for area 8 in Occidental Mindoro.

Semirara was incorporated in 1980 to explore, develop, and mine coal resources in Semirara Island in Caluya, Antique.  The company, through SEM-Calaca Power Corp., also owns and operates a 600-megawatt coal-fired power plant in Calaca, Batangas.

The company reported that it saw its net income decline by 41.62% to P1.01 billion in the first quarter from P1.73 billion in the same period last year.  Revenues fell 11.16% to P5.68 billion from P6.36 billion, while cost of sales rose by 2.53% to P4.05 billion from P3.95 billion.