SEMIRARA Mining and Power Corp. (SMPC) said the Energy department had granted the request of the Consunji-led listed company to put on hold an order issued last month for the suspension of its coal trading activities.
In a disclosure to the stock exchange, the company said the Department of Energy (DoE) sent a letter putting on hold for 30 days the implementation of the agency’s June 4 cease and desist order and suspension on its coal trading activities.
The deferred order is to start on Tuesday or until the DoE has resolved the company’s verified answer, whichever comes earlier.
“SMPC shall continue its coal trading activities only on existing coal supply contracts/agreements,” the company said, quoting the conditions set in the department’s letter.
“SMPC shall not enter into new coal supply contracts/agreements,” it added.
The company should also “faithfully comply with all its commitments and obligations under Coal Trader Accreditation No. CT-208-12-0351(R).”
Last week, SMPC disclosed that it was in talks with the Energy department for the lifting of the cease and desist order on its coal trading activities after issues arose when a buyer failed to produce the required accreditation.
The company narrated the background of the case, which started on May 23, 2019 with the supply of Semirara coal to a buyer. The trial shipment of 4,768.73 metric tons (MT) was aimed at tapping additional market with representation on the part of the buyer that it has submitted and applied for a coal accreditation certificate with the DoE on April 5, 2019.
Under the rules, the DoE will issue the certificate of accreditation and/or registration or reject the application within 15 working days from receipt.
“Unfortunately, on shipment date, the buyer was unable to submit the said accreditation as it was still pending” with the DoE, SMPC said. “Thereafter, SMPC discontinued its supply and any trading with said buyer.”
On July 5, 2019, SMPC said it had 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.
On Tuesday, shares in SMPC rose 5.04% to close at P23.95 each. — Victor V. Saulon
