SMPC eyeing Japan as new export market for coal

Consunji-led Semirara Mining and Power Corporation (SMPC) is eyeing Japan as additional export market for beefed up coal output from its Semirara mine in Antique province.

SMPC President and Chief Operating Officer Maria Cristina C. Gotianun told reporters that the company had already done trial shipment to the Japanese market, and they are just waiting for warranted publication requirements before getting final response from the targeted buyer.

“We already had trial shipment, so hopefully that’s okay with them. We’re waiting for that publication from NAMRIA (National Mapping and Resource Information Authority),” she expounded.

NAMRIA, in particular, is a government agency of the Philippines that is into research and gathering of vita data and information on environment, land and water resources that will be needed by the State or private sector players for development planning as well as on their environmental and  natural resources management strategies.

Gotianun noted that “the Japanese (buyer) is very careful, so they will need that NAMRIA publication… that’s in process.”

She added that following their initial shipment, so far there had been no negative feedback from the Japanese offtaker, adding that “it seems it’s okay with them…they’re just waiting.”

The SMPC executive similarly emphasized that their long-time export markets – primarily China, as well as South Korea and Brunei Darussalam – are still gobbling up shipments from the Semirara mine; while domestic demand has also been on uptrend.

Sales from the company’s coal output are still seen to prop anticipated income improvement for SMPC on this year’s second half, to be supported by projected higher take from generated power capacity with the return to full capacity of the unit 2 of its plant under Southwest Luzon Power Generation Corp subsidiary.

Gotianun qualified that the plant’s resumption will add 300 megawatts of capacity that they can trade via the Wholesale Electricity Spot Market (WESM) or to be offered through the targeted bilateral contracts with off-takers.

On coal output, the company earlier reported that it already logged 5.2 million metric tons (MMT) within first half of this year; and the expectation is to hit 10 to 12 MMT for the full year.

Of the total production within January to June stretch, it was highlighted that a significant chunk at 2.2 MMT had been funneled to domestic demand – mainly due to higher requirements of its affiliate Sem-Calaca and SLPGC plants.

On the revenue sphere, however, Gotianun stated that overall financial performance may still be on the lean side due to continued slump in coal prices in the world market compared to their 2022 and 2023 peaks.