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Local mining firm Sultan Mining and Energy Development Corp. (SMEDC)
reported its Surigao del Sur coal mine has posted significant
increase in sales volumes coal mine owing to a rising demand for the
commodity, a company official said.
“For April alone, the production volume of
22,000 metric tons [increased] 120 percent from the previous month.
It was also greater than the first quarter’s production for
2008,” Anthony Buyawe, SMEDC chief finance officer, said.
He said that the April output of its Bislig
mine, the largest open-pit coal mine in Mindanao, also exceeded the
target for the month set at 20,000 metric tons “despite heavy
rains and challenging sea conditions during the period.”
The higher sales figure was attributed to the
ramping up of production as well as the healthy growth in coal
prices as the local and international firms shy away from oil
because of the soaring price of crude world wide.
With this positive development, SMEDC plans to
step up its coal production further in the coming months to at least
300,000 metric tons this year from less than 20,000 metric tons last
year.
“SMEDC’s management believes that the
company is in a position to increase and sustain profitability for
the remaining eight months of 2008 as it continues to increase
monthly coal production and convert these into sales,” Buyawe
said.
The company is set to undertake a P480-million
initial public offering (IPO) this quarter to raise funds for its
exploration and expansion activities. It has tapped Asian Alliance
Investment Corp. to be the lead underwriter for the IPO.
SMEDC shareholder Maxinvent Trading Corp. has
also granted Asian Alliance an option to purchase or place up to P48
million worth of SMEDC shares for the purpose of covering
over-allotments.
-- Euan Paulo C. Añonuevo
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