Semirara Lags Behind In Coal Production
Because of its decision to voluntarily defer operation in a block within its Molave mine area due to water build-up, Consunji-led Semirara Mining and Power Corporation (SMPC) has announced that it may lag behind in its coal production this year.
SMPC said that this is “due to water build-up in the sump of NB7, which was caused by water seepages and aggravated by heavy rainfall from the recent typhoon. With the lower production, estimated financial impact is an increase of around P900 million in cost of coal sold owing to a higher weighted average cost, which will impact 2020 profitability.”
Presently, the firm said that it is still behind by 1.7 million on the output goal for this year, and “ramping up production to meet the full-year target is unlikely at this point given the water seepages at NB7 (North Block 7).”
With this decision, SMPC said that this time can allow the firm’s mining personnel and consultants “to implement remedial measures to manage the water build-up.” It has, however, said that there is no definite date to when operations will continue.
According to the firm, “coal shipments for this year will not be affected by the deferral of the mining operations,” as the company still has 3.4 million metric tons of coal inventory as of December 1 this year.” It added that it, “may not be able to meet the coal quality specifications of a few customers due to the expected delay in the production of high CV (calorific value) coal.”
To address this delay, SMPC is now holding a dialogue with affected customers.