Semirara asks DoE to lift order vs coal trading in Negros Occ.
Semirara Mining and Power Corp. asked the Department of Energy to lift the cease-and-desist order on coal trading activities pending the resolution of its alleged violation of the rules.
SMPC disclosed to the Philippine Stock Exchange on Wednesday an ongoing discussion with the DoE for the immediate resolution of the matter.
The department ordered SMPC to clarify claims of illegal coal trading operations in Pulupandan Port, Pulupandan, Negros Occidental until July 7 and to cease and desist operations there until further notice by the regulator.
SMPC supplied Semirara coal to a buyer on May 23, 2019 on trial shipment of 4,768.73 metric tons in order to tap additional market.
Under the rules, the DoE will either issue a certificate of accreditation or reject the application.
“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. On July 5, 2019, SMPC has accordingly 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,” SMPC said.
Ads by AdAsiaYou can close Ad in 5 sThe company said it did not expect any material effects on its business, financial condition and operations.
“In order not to interrupt SMPC’s ongoing operation and renege on its contractual commitments to its coal buyers, SMPC have requested reconsideration of the DoE order and that the implementation thereof be held in abeyance pending resolution of the alleged violation, and allow SMPC to proceed and continue its current trading activities and operations,” SMPC said.
SMPC owns the country’s biggest coal mining operations in Caluya, Antique. It has remitted P3.57 billion in royalties to the DoE, representing the government’s share in the company’s mining revenues for 2018.
The royalty payment, remitted in March, is 17 percent lower than P4.3 billion paid last year as coal sales volume dropped 11 percent from 13.1 million metric tons in 2017 to 11.6 MMT.
The SMPC mine site directly employs over 3,300 people, making it the single biggest employer in Semirara Island and Caluya. The mine site payroll in 2018 reached P1.48 billion.