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SEMIRARA Mining Corp. plans to ramp up coal production and exports
this year, after securing tax perks from the Board of Investments (BOI).
On the sidelines of the stockholders’ meeting
of parent firm DMCI Holdings Inc., Isidro A. Consunji, company
president, told reporters that Semirara plans to augment its coal
production and exports by 1 million tons to a total of 4.5 million
tons this year, and to more than 5 million tons next year.
Consunji said the company is spending $25
million for its capital expenditure, the bulk of which will be used
for the acquisition of equipment.
The BOI granted the mining unit of DMCI six
years worth of income tax holiday and other perks such as zero
tariff on equipment acquisition.
“[We] have to take advantage of this
government support. The company is more encouraged to spend more for
the improvement of [our] production capacity,” Consunji said.
Last year, the company exported almost 800,000
tons of coal to China, India and Hong Kong.
“Contrary to rumors that [our] coal is of poor
quality, China, India and Hong Kong are very well satisfied with
[our] product,” Consunji said.
The company is eyeing to double its shipments to
1.6 million tons this year, and to over 2 million tons next year.
“Anything [we] could produce, China and India
would definitely buy. That is how in demand coal is right now
following its historically high price in the world market,” the
DMCI executive said.
“For the second half, [we] are confident to
meet if not to surpass this export goal since the winter in China
further spikes up the demand for coal,” he added.
Break-neck economic expansion in China, India
and other emerging markets has caused the prices of oil, coal and
other commodities to shoot up to records. At present, Semirara coal
sells for between $65 and $75 a ton.
-- Katrina Mennen A. Valdez
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