Semirara Mining and Power Corp. is allocating P5 billion to increase the production capacity of its Antique coal mines to a maximum of 16 million metric tons in the next two to three years, its top official said Tuesday.
“We got permission to do 16 million MT in two to three years’ time,” Sem-Calaca chairman and chief executive officer Isidro Consunji told reporters after the annual stockholders’ meeting.
The company has received approval under its amended environmental compliance certificate, allowing a maximum coal production of 16 million MT.
The company plans to use the higher production capacity to supply the increasing domestic demand from coal-fired power plants, which are due for commissioning and commercial operation from 2017 to 2020. The company produced 12 million MT of coal last year.
“Our plan to increase coal mining capacity is in line with the government’s thrust for power stability, optimal pricing of electricity and intensified infrastructure development,” Consunji said.
The company is moving in additional mining equipment to accommodate the increase in production, double the conveyor line, lengthen the pier and expand the coal storage area. The current facility can only accommodate 12 million MT.
Consunji said the company would spend P2 billion this year and P3 billion next year for the increased production.
“This year we are aiming 13 million MT but if we get 14 MT, we will be very happy because the weather is projected to be a little bit wet,” Sem-Calala president and chief operating officer Victor Consunji said.
The company’s expansion program will require the approval of the Energy Department.
The company is the biggest coal miner in the Philippines, accounting for over 97 percent of the total country’s production both for local consumption and exports.
Sem-Calaca supplied 5.8 percent of the total system demand for Luzon and Visayas.
The company, through wholly-owned subsidiary Southwest Luzon Power Corp, meanwhile, declared commercial operations for its 300-megawatt coal plant expansion in Calaca, Batangas last year.
Sem-Calaca owns the existing 600-MW coal plant that it acquired from the government. It is also pursuing a 700-MW coal plant expansion in joint venture with Meralco PowerGen Corp.
Sem-Calaca recorded net income after tax to P12.05 billion in 2016, up from P8.49 billion in 2015.
Company officials expect higher income in 2017 due to the higher price of coal, increased production capacity, bigger cement demand and new coal markets.
Sem-Calaca last year embarked on a three-year life extension program to increase the generation capacity of Unit 1 by 50 MW to 70 MW using 100 percent Semirara coal. The program also extended the life of the power units by around 20 years.
Sem-Calaca has shipped coal to Japan, Indonesia, Taiwan and China. It counts Petron Corp., Filinvest Development Corp. and Eagle Cement as among its new domestic customers.