Semirara Mining files MR at DOE on coal-trading order
By Lenie Lectura -November 22, 2019
from Business Mirror
SEMIRARA Mining and Power Corp. (SMPC) said Thursday it filed a motion for reconsideration (MR) with the Department of Energy (DOE) to lift the coal trading suspension imposed on the Consunji-led firm.
“SMPC filed its motion for reconsideration with the DOE yesterday, November 20,” it said in a disclosure to the stock exchange.
The agency earlier ordered the suspension of all mining activities under Coal Operating Contract 5.
Separately, the DOE said the company violated DOE Circular DC2012-05-0006, or the Guidelines on the Accreditation of Coal Traders and Registration of Coal End-Users. It issued a resolution directing the company to suspend coal trading with Gold Anchorage Stevedoring and Arrastre Services for one month. It also imposed a P1.735-million fine against the company.
“We would also like to stress that the DOE Resolution dated October 15, 2019, 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.
“With respect to the DOE Suspension Order dated November 14, 2019, SMPC is completing the requirements to comply with the conditions stated therein. We intend to reply to the DOE by Friday, November 22, to address their requirements,” the company said.
The company gave assurances that it is focused on complying with all the directives of the DOE so it can resume operations at the soonest possible time.
“Upon receipt of our submitted documents, the DOE shall evaluate our submissions for approval. We estimate that this will take around 15 days. However, this timetable could change depending on the review process of the DOE,” it added.
The DOE orders of suspension will result in opportunity loss in production per day from 40,000-45,000 metric tons (MT). But the company’s total production is already at 14.5M MT, which is 12 percent higher than total 2018 production of 12.9M MT. Moreover, coal shipment already reached 14.6M MT, 26 percent higher compared to the 11.5M MT total shipment in 2018.
