SEMIRARA Mining and Power Corp. on Monday said the decision to extend or terminate a soon-to-expire coal contract was up to the Department of Energy (DOE), whose top official said last Friday that renewal was off the table.
The company told the stock exchange that it had yet to receive formal notice regarding the matter.
"We clarify that the decision on the coal operating contract rests with the DOE, and we have not received any formal notice of a final decision on our request for term adjustment," it said in a disclosure.
Energy Secretary Sharon Garin said the contract would be auctioned off as advised by the Department of Justice. Semirara, she added, could participate.
The company said it would be a strong contender, saying "our decades of experience in managing complex engineering projects, coupled with our established operations, technical expertise and extensive equipment fleet developed through its long-standing operations in Semirara Island, provide a strong competitive advantage among the contenders."
"We have communicated this to the DOE," it added.
Semirara Mining’s coal operating contract was issued in 1977 and had an effective period of 35 years until 2012. The term was extended by another 15 years, and it is now set to expire in 2027.
The mining firm's shares plunged by P7.10, or 21.39 percent, to close at P26.10 apiece on Monday.
