SEMIRARA ISLAND, Antique—Semirara Mining and Power Corp. will spend about P5 billion on mining equipment capital expenditures this year as part of the company’s expansion and fleet modernization program.
Semirara Mining has already spent P3.5 billion in the first six months of the year, including the delivery 46 dump trucks, six hydraulic excavators and other support machinery. The company spent nearly P1 billion on equipment in the same period last year.
Semirara Mining expects the shipment of 21 more heavy equipment by the end of the year.
The company plans to increase coal production to 16 million metric tons in the next two to three years to align with the government’s push for power stability, optimal energy pricing and modernized infrastructure.
“The new dump trucks and hydraulic excavators are designed to be more fuel efficient so they will contribute to the reduction of our carbon footprint and operating costs,” said Semirara Mining president and chief operating officer Victor Consunji.
Japanese heavy equipment suppliers said fuel consumption of the new dump trucks might be reduced by as much as 14 percent compared with older models. Fuel expenses account for about 40 percent to 45 percent of Semirara Mining’s mining costs.
“This is just the start of our fleet modernization program. We plan to continue this next year by decommissioning our aging heavy equipment and replacing them with newer models,” said Consunji.
“Our goal is to improve our operational efficiency and environmental performance,” he added.
Semirara Mining is the only power producer in the country that owns and mines its own fuel source, allowing it to generate cheap baseload power for the Luzon and Visayas grids.