THE Department of Energy (DoE) has lifted the suspension order imposed on Semirara Mining and Power Corp’s (SMPC) coal mining operations in Semirara Island in Antique province.
“We wish to inform the Exchange that today the Company received official notice from the DOE lifting the suspension order and approving the resumption of mining operations except in the area adjacent of the former Casay Lake until such time that all liquefiable materials in the area have been removed,” the Consunji-led firm said in a disclosure on Friday.
The DOE ordered the suspension of SMPC’s mining operations under Coal Operating Contract No. 5 in a letter dated November 14 after a mudflow incident on October 2, 2019, which led to the death of SMPC’s mining operator.
The company noted that the suspension could result in opportunity loss in production per day of as much as 45,000 metric tons (MT), with value depending on the prevailing price of coal.
Despite this, SMPC noted that its total production is already 12% more than the volume in 2018, or is at 14.5 million MT. Coal shipments also reached 14.6 million MT, 26% higher, year-on-year.
The DoE also fined the company P1.735 million for violating section 3 of Department Circular No. DC2012-05-0006, or the Guidelines on the Accreditation of Coal Traders and Registration of Coal End-Users over alleged unabated and continuous coal trading despite the suspension of its accreditation.
Shares in SMPC climbed 5 centavos or 0.23% to close at P22 apiece at the stock exchange on Friday. — Vincent Mariel P. Galang