SEMIRARA Mining and Power Corp. (SMPC) is preparing the best mining plan it can come up with to boost its chances of obtaining a new coal operating contract after the existing one expires next year, officials said.
"We have been doing this for close to three decades — in terms of large-scale complex mining, growing production, and delivering on our commitments,” President and COO Maria Cristina Gotianun said during the company's annual stockholders' meeting on Monday.
“With this expertise, we are putting forward a mine plan that will keep production steady, supports energy security, and will continue delivering for the government," she said.
On the possibility of losing the bid, Gotianun said the company was flexible and would look for other opportunities in the mining sector.
"At the same time, we remain prudent. Given the more supportive direction for responsible mining, we have the flexibility to redeploy our capabilities, people and capital across other opportunities in the sector where we can contribute to create value," she said.
The Department of Energy (DOE) announced in February that Semirara’s expiring coal operating contract would be auctioned following a Department of Justice (DOJ) opinion that it could no longer be renewed.
Semirara’s coal operating contract was issued by the government in 1977 with an original term of 35 years until 2012. The DOE had extended the term by 15 years and the contract is set to finally expire next year.
The DOE launched a predetermined area bid round for coal development and production in February, offering three coal areas covering 18 coal blocks.
The areas include 10 blocks on Semirara Island previously under contract with Semirara Mining; three blocks in Amulung and Iguig, Cagayan; and five blocks in Benito Soliven, Naguilian, and Cauayan, Isabela.
Semirara Mining shares on Monday dropped P0.35, or 1.35 percent, to close at P25.65 each.
ED PAOLO SALTING
