Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 10870

PHL ‘out of the woods’ with inflation

By Melissa Luz T. Lopez
Senior Reporter
THE PHILIPPINES appears “out of the woods” as far as inflation is concerned, with the overall rise in prices of basic goods seen consistently lower until the last few months of 2019, a senior central bank official said, although rising oil prices and the impact of severe weather may be disruptive.
The Monetary Board decided to keep the key policy interest rate unchanged at 4.75%, remaining at a decade-high.
New Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said current settings remain “appropriate,” even as inflation has eased further.
The BSP also scaled down its inflation forecast for the year to three percent, well within the 2-4% target band after overshooting with 5.2% in 2018. Central bank officials are now confident of staying on target, citing four straight months of easing inflation from the nine-year-high 6.7% hit in September and October.
“The downward trajectory will continue in 2019, but in 2020 it will be generally stable at around three percent,” BSP Deputy Governor Diwa C. Guinigundo told reporters. “It has stabilized, and the negative base effects shall have dissipated by maybe up to the third or fourth quarter of the year.”
Price increases averaged 4.1% for the first two months, with February’s 3.8% marking the first time in a year that inflation settled back on target.
The BSP said supply conditions for rice and other food items have since returned to normal after causing price spikes late last year, on top of rising world crude oil prices as well as the impact of additional levies imposed under Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion Act.
Prior to Thursday’s Monetary Board decision, Mr. Diokno said he saw room to ease policy settings amid declining inflation.
“As far as the information that we have today is concerned, I think we are out of the woods. But given that we only have two observations — 4.4% and 3.8% — our year-to-date is still above four percent. But looking at the forecast of three percent, it looks like we are out of the woods,” Mr. Guinigundo added.
On the flip side, the BSP official said monetary authorities cannot rest easy just yet, adding that it would be unwise to slash interest rates swiftly.
“El Niño could be prolonged. Two, oil prices seem to be acting up again. These are the wild cards,” Mr. Guinigundo said.
“Kaya mahirap na bumaba na magbaba na tayo ng RR, magbaba na tayo ng policy rate (It will be risky to just reduce the reserve requirement and the policy rate),” he added.
“That would be imprudent, we have to be very careful.”
Latest estimates by the country’s weather bureau showed a high probability of El Niño lasting until at least August, with a severe dry spell expected by April. The Philippine Atmospheric, Geophysical, and Astronomical Services Administration said on Friday that while the current El Niño was weak, “varying impacts are present and becoming severe.”
The BSP increased benchmark interest rates by cumulative 175 basis points last year to rein in inflation expectations. Market watchers now see the BSP’s May 9 policy meeting — this year’s third monetary policy review — as setting the stage for the first of successive rate cuts.

Manila eyes more opportunities to link up with Belt and Road

THE PHILIPPINES is gearing up to secure additional funding support from China for local infrastructure projects, with the two economies enjoying deeper investment ties amid growing “mutual trust.”
The economic team of President Rodrigo R. Duterte flew to Beijing last week for a series of meetings with Chinese officials, where the two parties explored opportunities for increased economic interaction.
Bilateral ties are expected to improve further with “political mutual trust continuously increasing,” Chinese Commerce Minister Zhong Shan was quoted as saying in a statement sent by the Department of Finance (DoF).
Mr. Zhong added that there is “enormous room” for further cooperation, which has significantly expanded after Mr. Duterte’s October 2016 visit to Chinese President Xi Jinping.
China has been among the biggest sources of official development assistance (ODA) for the Philippines’ “Build, Build, Build” infrastructure pipeline.
Chinese officials said there are more opportunities lined up under the Belt and Road Initiative.
Mr. Duterte is set to attend the second Belt and Road Forum for International Cooperation in April, the DoF said.
“We look forward to implementing more strategic infrastructure projects supported by highly concessional financing from China,” Finance Secretary Carlos G. Dominguez III said in the statement.
So far, the Philippines has secured Chinese credit for four construction projects. These are the Binondo-Intramuros and Estrella-Pantaleon Bridges that involve a $63.13-million grant, $52.09-million ODA financing for the Chico River Pump Irrigation Project and $211.21 million for the New Centennial Water Source-Kaliwa Dam project.
Moreover, the Subic-Clark Railway Project in Luzon, Mindanao Railway Project, Davao-Samal Bridge Project and the Panay-Guimaras-Negros Interisland Bridge Project are being considered for Chinese funding.
Last week’s visit to Beijing also included a non-deal investor road show plus a Philippine Economic Briefing before some 500 prospective investors there.
Filipino businessmen accompanying Philippine government officials for a fresh pitch to Chinese investors included Jollibee Foods Corp. Chairman Tony Tan Caktiong; GT Capital Holdings, Inc. Vice-Chairman Alfred V. Ty; LT Group, Inc. President Michael G. Tan and Udenna Corp. Chairman Dennis A. Uy, according to the government’s Investor Relations Office. — Melissa Luz T. Lopez

Finance dep’t downplays record current account gap

THE RECORD current account deficit incurred in 2018 remains “financeable” as the government expects continued investment inflows from abroad, the Department of Finance (DoF) said.
Market watchers should not be too alarmed despite the current account posting an all-time-high $7.9-billion deficit last year, more than three times the $2.2-billion gap in 2017 and shooting past the $6.4-billion projection of the Bangko Sentral ng Pilipinas (BSP).
The current account provides a snapshot of the country’s economic interaction with the rest of the world, covering trade in goods and services; remittances from overseas Filipino workers; profit from Philippine investments abroad; interest payments to foreign creditors; as well as gifts, grants and donations to and from abroad.
A deficit means more funds went out than what came in.
The BSP attributed last year’s record deficit to a surge in imports of raw materials and capital goods, which economic managers attributed to the robust infrastructure pipeline of the Duterte administration.
However, the DoF said inflows from service trade and strong foreign investments should help offset outflows.
“The current account remains financeable even as the deficit rose to 2.4% of GDP (gross domestic product) in 2018. Foreign investors and lenders find the country an attractive investment destination,” the Finance department said in an economic bulletin published yesterday, noting that these will “finance local investment.”
The gap in goods trade ballooned to an equivalent of 18.4% of GDP last year, coming from a milder 12.4% in 2017.
Helping offset these outbound fund flows were inbound payments for business process outsourcing, offshore earnings of Filipino investors and remittances from Filipinos working abroad.
“Maintaining good fundamentals by keeping the twin deficits — budget and current account — manageable thru maintaining interest rates at the level that raises both the volume of savings and investments will enable the country to sustain rapid economic growth in the medium term,” the DoF said.
For 2019, the BSP expects the current account gap to balloon further to an $8.4-billion deficit, equivalent to 2.3% of GDP. — Melissa Luz T. Lopez

TransCo reduces proposed 2019 feed-in tariff allowance

THE National Transmission Corp. (TransCo) has asked the Energy Regulatory Commission (ERC) to reduce by around 3 centavos the feed-in tariff allowance (FiT-All) it will be collecting from consumers for 2019, its top official said.
“We requested ERC to make an adjustment to the [FiT-All] from our original application ‘nung (in) 2018,” Melvin A. Matibag, TransCo president and chief executive officer, told reporters last week.
He said TransCo’s manifestation to amend its previous application was submitted on March 6 requesting the 2019 rate to be P0.240 per kilowatt-hour (/kWh).
Based on TransCo’s application submitted to the ERC in July last year, it was seeking approval for a FiT-All of P0.273/kWh for 2019.
“So may (there will be) rate reduction.”
He said TransCo applied for the reduction because it was able to reduce its payment backlog to renewable energy developments.
He added that the company was also on its way to fully cover its buffer fund.
“P200 million na lang as we speak… para on time na kami (P200 million remains as we speak… for us to be updated with payment),” Mr. Matibag said when asked about the amount that TransCo has yet to pay developers.
“Starting May on-time na; wala na kaming backlog (we will be updated in our payments; we won’t have any backlog),” he added.
The amended application comes as TransCo awaits the approval of its FiT-All application for 2018, amounting to P0.2932 per kWh.
INSTALLATION TARGET RAISED
In May 2018, the ERC authorized the collection starting in June 2018 of a FiT-All for 2017 equivalent to P0.2563/kWh, or an increase of P0.0733/kWh from the previous P0.1830/kWh.
Calculated annually, the FiT-All is a uniform charge that is applied to kilowatt-hours billed to consumers who are supplied with electricity through the country’s distribution or transmission network.
The uniform charge is paid to developers of renewable energy power plants.
The FiT-All mechanism was established under Republic Act No. 9513, or the Renewable Energy Act of 2008, which aims to jump-start the development of renewable energy sources such as wind, run-of-river hydropower, solar and biomass.
The collected amount is managed by TransCo before the fund is paid to developers. The FiT-All has been added to the monthly bills of electricity users starting in 2016.
TransCo previously said that unpaid FiT for renewable energy developers had accumulated in part after the Department of Energy increased the installation target for solar power projects to 500 megawatts (MW) from 50 MW. This left more developers billing TransCo for their guaranteed FiT.
The backlog was also worsened by the delay in the approval of the rate of FiT-allowance collected from electricity users, which TransCo applies for every year. — Victor V. Saulon

The Election Cycle of Public Construction

The Election Cycle of Public Construction

Phoenix targets 20% LPG sales growth in VisMin

DAVAO CITY — Phoenix LPG Philippines, Inc., the liquefied petroleum gas (LPG) unit of Dennis A. Uy’s listed firm Phoenix Petroleum Philippines, Inc., is aiming to increase its sales by about 20% this year in the Visayas and Mindanao with the expansion of retail outlets.
In a press conference over the weekend, Evelyn T. Gerodias, general manager for the Visayas-Mindanao market of the Phoenix Super LPG brand, said this year’s growth target is higher than the 14% increase in volume it recorded last year in Visayas and Mindanao.
“(The 20%) increase is possible,” said Ms. Gerodias, noting that they have already started with a more aggressive marketing campaign with celebrity Sarah Geronimo as brand ambassador along with saturating existing distribution networks with their product.
Phoenix’s marketing strategy also highlights the German technology used for its LPG tanks to ensure safety and provide a simple installation and operation system for consumers.
Ms. Gerodias said Phoenix will be increasing its Phoenix Super Hub stores, currently at 30 nationwide, to reach more buyers.
The LPG product is also sold at Phoenix Petroleum’s gasoline stations and Grainsmart stores.
“We are trying to reach all households in the market,” she said.
Ms. Gerodias also said that the company is open to dealership deals, which would require about P10 million in capital expenditure.
Phoenix Petroleum, headquartered in Davao City, started its LPG subsidiary in 2017 when it bought the LPG business of Petronas Energy Philippines, Inc., a subsidiary of the Petronas Dagangan Berhad of Malaysia. — Carmelito Q. Francisco

Positive property outlook drives RLC share price higher

By Christine Joyce S. Castañeda
Senior Researcher
FOREIGNERS LOADED on Robinsons Land Corp. (RLC) shares, making it one of the most actively traded stocks in the local bourse last week.
Data from the Philippine Stock Exchange (PSE) showed the property developer trading P492.13 million worth of 20.56 million shares from March 18-22.
Shares closed at P24.65 apiece on Friday, up P0.20 or 0.82% from the previous day and 2.71% week-on-week from the P24 finish on March 15. For the year, the stock gained 16.82%.
“Investors digest the good corporate earnings released as positive,” Philstocks Financial, Inc. Client Engagement Officer and Research Associate Piper Chaucer E. Tan said in an e-mail.
Mr. Tan added that foreign investors are starting to come back not just for RLC, but for the whole property sector as well. “Dovish sentiments coming from BSP (Bangko Sentral ng Pilipinas) also increased the appetite for property stocks…,” he said.
In a separate e-mail, Cristopher Adrian T. San Pedro, certified securities representative at Unicapital Securities, Inc., ascribed the stock’s performance to the net foreign buying last week, driven by the dovish statement by the BSP on the possible reserve requirement cut for banks in the next four quarters that would “help the property sector to have low cost funding and would also boost consumer demand given additional liquidity of P90-100 billion in the market.”
Earlier this month, BSP Governor Benjamin E. Diokno hinted at the possibility of slashing the reserve requirement ratio (RRR) by one percentage point per quarter for the next four quarters. If implemented, the cuts would leave the RRR at 14% by early 2020 from the current 18%.
Meanwhile, RLC said in a statement last March 14 that its net income reached P8.23 billion in 2018, higher by around 40% from the P5.9 billion in 2017. Consolidated revenues also increased by 31% to P29.44 billion. The malls division accounted for the bulk of RLC’s revenues at P11.94 billion, up 11% year on year. This was driven by the higher rental income and the opening of four malls last year, namely Robinsons Place Ormoc, Robinsons Place Pavia, Robinsons Place Tuguegarao, and Robinsons Place Valencia in Bukidnon.
The property developer now has a total of 51 malls covering a total leasable space of 1.5 million square meters.
The company’s residential segment and office division also saw their revenues growing by 33% and 26%, respectively to P8.69 billion and P4.11 billion.
Meanwhile, stock market data showed that on the days leading to RLC’s report on earnings for 2018, net foreign buying from March 11 to 14 stood at P4.01 million. A day after the release of the company’s earnings, net foreign buying on March 15 had reached P45.61 million.
Foreigners continued to buy RLC shares last week with net foreign buying amounting P22.65 million although this was lower than the previous week’s P49.62 million.
For this year, Unicapital’s Mr. San Pedro said the company could rake in P9 billion in profits, driven by the local and international residential segment sales, the continued growth in mall revenues, and the increase in demand for its office division brought by the growing information technology and business process management sector and the influx of foreign workers.
For his part, Philstocks’ Mr. Tan expects RLC to book a P7.4-billion net income this year, fueled by growth of the residential and office leasing segments.
Mr. Tan placed the stock’s support at P23 to P23.50 and resistance at P24.70 to P25.
“The stock remains bullish and I expect it to consolidate between P23.00 support and P25.00 resistance with the possibility of testing P25.50 and P26.00 if it stays above P23.50 in the short term,” Unicapital’s Mr. San Pedro said.

Lazada platform aims to build ‘super e-businesses’ in the region

By Vincent Mariel P. Galang
Reporter
SINGAPORE — Lazada Group is introducing “super solutions” on its platform that aim to help transform businesses in Southeast Asia to “super e-businesses.”
Lazada President Jing Yin announced the new features that will help improve branding, marketing, and sales of the platform’s brands and sellers in LazMall during the first LazMall Brands Future Forum held at JW Marriott in Singapore on March 21.
The features, which are available for all types of businesses whether big or small, were highlighted during the launch, which is part of the seventh anniversary of the biggest e-commerce company in Southeast Asia.
LazMall can be found in the platform launched in 2018 that offers authentic top-rated brands and next-day delivery. It has more than a thousand brands, including The SM Store, Robinsons Appliances, Samsung, Huawei, MAC, L’Oreal, Maybelline, and Unilever.
“As brands and sellers, our day 1 thinking is we are building a solution-based service to allow brands and sellers to run their branding, marketing, and sales all within one platform, and having of course, customer in the center piece,” Mr. Yin said.
“We come forward with the best in-class technologies and dully powered by data… That’s why we introduce today… we’re trying to share our super solutions to empower the future of e-businesses,” he added.
The new offerings would include super campaigns, which brands and sellers can opt to use to help boost their image and engage with customers.
There will also be new and better marketing solutions and business advisor dashboard to drive more store traffic and near real-time information to aid faster business decisions. Specifically for the dashboard, this will display the current analytics and information that will help owners know or decide on the next step for their business.
A store builder tool can be used to decorate storefronts to help businesses differentiate themselves from other brands and sellers in the LazMall platform. The tool is expected to create greater visibility, boosting store traffic. New technologies will be incorporated in the platform, including image search and live streaming, to allow customers to comment in real-time. Other features include storefront banner personalization and in-app games, which are expected to fuel consumer engagement.
Signing up one’s business is made easier through new a self-sign up feature, which mainly targets small and medium enterprises.
“We firmly believe, we are not the retailer of the region instead we want to be the platform providing tools that empower hundreds and thousands of young entrepreneurs to become the next e-businesses,” he noted.
“No seller is too small to aspire, and no brand is too big to be a super e-business. That is why we are thrilled to roll out super-solutions to help our brands and sellers become more nimble in digitizing their businesses and better reach customers,” Pierre Poignant, chief executive officer of Lazada said in a statement.
“LAZADA EFFECT” ON BUSINESSES
Being in a competitive industry, e-commerce businesses need to maintain a good image and be a “differentiator” to be on top of their game, but through a platform like Lazada, this factor is made easier, allowing brands and sellers to focus on the business to excel.
Tracy Jia, business manager of Coocaa said joining Lazada had helped the company reach more markets. In the Philippines, it was launched through the platform on March 18 to 20.
“Thanks to Lazada’s support we have achieved $300,000 on the Coocaa launch event March 18-20. Now, we also joined Lazada’s birthday campaign with a golden slot which we expect to be successful, as well. As a newly launched brand in Lazada, we have achieved more than 1,300 units sellout within three days, and we are very confident to achieve double sales on the Lazada birthday,” she said in a text message.
Coocaa is a Chinese television brand and is a joint business partnership (JBP) with Lazada. It enables brands to tap into the platform’s technology and logistics infrastructure, innovation, and e-commerce proficiency.
Xiaomi Philippines, a Chinese electronics company that manufactures phones, laptops, and the like, shared the same sentiment. Through the platform, the company was able to reach more Filipinos.
“In 2018, Xiaomi has become the best-selling smartphone brand on Lazada’s biggest sales events, Xiaomi Super Brand Day, 11.11 and 12.12. As we mark our second year in the Philippines, we will continue to offer amazing products at honest pricing on Lazada to make innovation accessible for all,” Peaker Gao, country manager of Xiaomi Philippines, said in a text message.
To further drive the new shopping experience through “shoppertainment,” Lazada is also breaking boundaries by hosting the first live-steamed concert in the platform called “Super Party” in Jakarta, Indonesia on March 26. This is held before the platform’s birthday shopping event on March 27, which will feature items priced up to 90% off, in-app games to be able to redeem vouchers, and a lot more.

Smart recognized for fastest download speed in PHL

THE WIRELESS subsidiary of PLDT, Inc., Smart Communications, Inc., has been awarded by a Germany-based benchmarking firm for offering the fastest download speed in the Philippines.
In a statement, Smart said it was recognized for its network speed by P3 communications GmbH of the P3 group in a recent study covering data from late last year.
“The crowdsource-based study, which included 121 million samples from 104,000 users collected from October to December 2018, said Smart achieved the highest user download speed score among competitors with 98 points, compared to nearest competitor’s 68 points,” the company said.
This comes after Smart was also awarded by Opensignal for delivering the best mobile video experience in the country, and by Ookla for providing the fastest mobile download and upload speed over competitors.
“This latest award is further proof that our continuous network upgrades across the country are paying off, and that our customers are feeling the benefits whenever they use mobile data to connect with their families, to access online services like banking and e-commerce, or to stream videos on their phones,” PLDT-Smart Senior Vice-President for Network Planning and Engineering Mario G. Tamayo said of the P3 recognition.
PLDT earlier announced it is allocating a record P78.4 billion for capital expenditure this year, of which P48 billion will be spent on developing its network and information technology platforms.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

Fruitas aims to keep growth momentum this year

By Arra B. Francia
Reporter
FRUITAS HOLDINGS, Inc. (FHI) is upbeat on sales prospects for the year as it hopes consumers will spend more due to the election season.
“We expect the growth momentum to continue. We will continue to expand our store network and also look for additional brands,” FHI Chief Financial Adviser Calvin F. Chua told reporters on the sidelines of a company media event last Friday.
The food cart operator’s optimism for 2019 comes on the back of expectations that the Philippine economy will continue to expand, especially since inflation is now stabilizing.
“And I think because this is an election year, consumer spending will be particularly strong,” Mr. Chua added.
The company plans to file its application for an initial public offering (IPO) with the Securities and Exchange Commission within the second or third quarter of the year, in time to debut at the Philippine Stock Exchange by yearend.
First Metro Investment Corp. and BDO Capital & Investment Corp. were tapped as underwriters for the issuance.
“We continue to monitor market conditions and we’re still targeting 2019,” Mr. Chua said, adding that they are waiting for the market to become more stable and for valuations to pick up.
FHI looks to raise up to P2 billion from the initial offering, in a bid to double its store network in the next five years.
The company ended 2018 with around 950 stores, with about 150 to 200 more to be added this year. Brands under its portfolio include Fruitas, Johnn Lemon, Juice Avenue, The Mango Farm, Jamaican Pattie Shop, and Friends Fries, among others.
“We’re looking at opportunities to expand our store network nationwide from Metro Manila to provincial areas,” Mr. Chua said.
He noted the company’s model is to own majority of their stores, pointing to the 80-20 ratio of company-owned versus franchised stores.
“That’s really grounded on our ability to better control our operations, also have ears on the ground by having more stores actually stationed with area managers, supervisors, and they have the pulse of our market,” Mr. Chua explained.
Asked if Fruitas plans to have more franchised stores in the future, Mr. Chua said they expect company-owned stores to not go much lower than 80% in the next three years.
“I think we will see if there are areas where franchisees can provide value and that’s where we will choose to franchise.”
Franchising fees range from P500,000 to P1.5 million, depending on store size and location.
FHI was founded in 2002 by businessman Lester C. Yu from a single food cart location in Manila. Aside from food carts, it now has three food parks in Quezon City, namely 150 Maginhawa Food Park, Le Village, and Cascades.

On runway, SM sends message: I’m every woman

WHEN SM said that they’ve got it all for you, they weren’t kidding. BusinessWorld saw how SM wanted to cater to every woman during a fashion show held last week for SM Woman’s Spring/Summer 2019 collection in SM Megamall’s Fashion Hall.
BusinessWorld saw a palette of dusty pastels like old rose and mustards on blazers, tops, and slacks. This season, floral and tropical prints appear on jumpsuits, while kimonos in bold floral prints are all the rage. Plaids, checks, and tartans, meanwhile, take one from the resort to the boardroom with a playful tune thanks to blazers paired with shorts.
Speaking about the clothes’ resemblance to looks that have just been seen on the international runways, Jo Dy-Juanco, senior vice-president for SM Store events said, “You can also see a bit of Kate Spade there. [But] what is the take of the Filipino?”
That’s nice and all, but it was even better to see women of all shades, sizes, and ages on the runway: think Bubbles Paraiso and Phoemela Baranda, and then Frenchie Dy and Bituin Escalante representing plus-sized women. Finally, Angie King, in her first fashion show walk, glided down the runway in a black floral kimono, preceded by her spouse, Joey Mead King.
“When we say fashion for every woman, we’re serious about that,” said Ms. Dy-Juanco. “We wanted every woman, of any size, or race, to be able to wear that,” she said about the clothes.
She really is serious when she said that the clothes should fit every woman: before the pieces even hit SM stores, Ms. Dy-Juanco and her team take the time to wear the clothes themselves, the better to see how each item falls, fits, and drapes. “In all the clothes that we’re looking for, it’s all about the fit.” SM apparently does not design its own clothes, and functions as a buyer by buying their stock from suppliers.
Ms. Dy-Juanco takes a hands-on approach to the clothes, going as far as sending prototypes to friends to get feedback. “We listen to our customers — a lot,” she said. “It’s not just about the color; it’s how comfortable we feel when we wear something. We wanted women to have that freedom.”
It could be argued, then, that SM Woman is a brand by women, for women. “It has been for the longest time,” said Ms. Dy-Juanco, “My boss is a woman.” (She was, of course, referring to Teresita T. Sy-Coson, co-vice chairperson of SM Investments Corp.).
This March, tagged Women’s Role in History Month, customers can get up to 50% off on selected SM Woman items. Every Wednesday, SM Advantage Card holders get an extra 10% discount for a minimum single receipt of P3,000. — Joseph L. Garcia

SMPC spends P2.9B to rehabilitate Panian pit

SEMIRARA MINING and Power Corp. (SMPC)’s rehabilitation efforts for the southern portion of its Panian pit reached P2.9 billion in 2018.
In a statement sent over the weekend, the Consunji-led energy firm said bulk of the spending went to the acquisition of dump trucks, excavators, and other support equipment at P1.83 billion. These helped facilitate the company’s stripping and hauling operations in Semirara Island.
More then P1 billion was spent for fuel, labor, and other cash needs.
The rehabilitation efforts address a 2017 order by the Department of Energy (DoE) to fast-track the backfilling of the southern portion of Panian pit, to be used as a model for open pit mine rehabilitation in the country. It follows a five-year work program and budget submitted to the DoE.
SMPC has since unloaded 120 million bank cubic meters (BCM) of overburden materials into the southern portion of Pania pit.
BCM refers to the volume of earth lying naturally that is neither loose nor compact due to mine-site activities such as excavation.
The pit’s current elevation is now at zero meters, significantly better than its starting elevation of negative 260 meters — about the same height as a 78-storey building.
The company will start putting humic acid, compost, and other materials once the pit is completely filled in. This will restore soil nutrients in the area before the company can proceed with reforestation. SMPC will then plant trees endemic and suitable to the area.
This rehabilitation aims to restore Panian’s original landscape that had open grasslands with a variety of trees and shrubs.
SMPC shut down operations in the Panian pit in September 2016, after the DoE certified the depletion of its mineable coal reserves. The company now has operations in the Molave and Narra pits.
The company saw its consolidated net income drop by 15% to P12 billion in 2018, after coal production declined two percent to 12.9 million metric tons. It attributed the slowdown to heavy rains experienced in the third quarter. — Arra B. Francia

1...10,86910,87010,871...13,910Page 10,870 of 13,910
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube