SEMIRARA Mining and Power Corp. (SMPC) has asked the Energy department to reconsider its decision suspending the Consunji-led company’s coal trading for a month and imposing a fine of P1.735 million, it told the stock exchange on Thursday.
“We would like to notify the Exchange that SMPC filed its Motion for Reconsideration with the [Department of Energy, DoE] yesterday, November 20,” it said in a disclosure.
A DoE resolution dated Oct. 15, 2019 found the company in violation of Department Circular No. DC2012-05-0006 or the Guidelines on the Accreditation of Coal Traders and Registration of Coal End-Users.
The one-month suspension was imposed on the company for violating Section 7.2 of the circular due to its coal trading or transaction with Gold Anchorage Stevedoring and Arrastre Services, which is an unaccredited coal trader, except deliveries of SMPC-owned power plants and other local power plants with existing coal supply agreements.
The fine was for violating Section 3 of the circular due to unabated and continuous coal trading despite suspension of its accreditation.
SMPC said it would like to stress that the DoE resolution is not yet final and executory.
“Our pending motion temporarily defers the implementation of the coal trading suspension, which would allow SMPC to continue serving its coal customers,” it said.
SMPC said that on a separate DoE suspension order dated Nov. 14, 2019, the company was completing the requirements to comply with the conditions set by the department. It said it intends to reply to the DoE by Nov. 22.
The suspension was in relation to a mudflow incident in Semirara Island in Antique province on Oct. 2, 2019 that resulted in the loss of the life of the company’s mining operator.
On Thursday, shares in SMPC fell by 9.57% to P19.76 each. — Victor V. Saulon
