According to the company’s website on July 17, 2015, Semirara Mining Corporation, formerly Semirara Coal Corporation, was incorporated on February 26, 1980 to explore, develop, and mine the coal resources on Semirara Island.
On April 7, 1980, Semirara Mining became the assignee of the coal operating contract pursuant to Presidential Decree No. 972, otherwise known as “The Coal Development Act of 1976,” which was then awarded by the Energy Development Board, now the Department of Energy on July 11, 1977, to a consortium formed by three private companies covering 5,500 hectares track of land. In June 1983, the contract was amended by an agreement of the parties, which gave the Corporation exclusive rights to conduct exploration, development and coal mining operations on Semirara Island in Antique Province until 2012.
Under the said law, the Corporation shall have the following incentives: exemption from all taxes except income tax; exemption from payment of tariff duties and compensating tax (VAT) on importation of machinery and equipment and spare parts, and material required for the coal operations, subject to certain conditions; accelerated depreciation of fixed assets necessary in coal operations; preference in grant of government loans, among others. In return, the Corporation pays the government 3 percent royalty for all incentives it enjoys under the coal operating contract, according to the information on the website.
Production at the Unong mine commenced in early 1984 with final acceptance of the project by the Corporation occurring in 1987 following the resolution of technical issues raised by the Corporation. Voest Alpine, after the Corporation negotiated for loan restructuring, acquired 40 percent equity in the Corporation’s shares.
In February 1997, Voest Alpine’s equity was subsequently purchased by DMCI Holdings, Inc. (“DMCI-HI”). However, following further difficulties experienced by the Corporation, DMCI-HI agreed to equity conversion in 1998, which gave it a total interest in the Corporation of 74 percent . In addition, in July 2004 the Corporation issued 19,657,388 shares to DMCI-HI, taking its shareholdings to 94.5 percent, and on
December 3, 2004, the Corporation issued dividend of P225 million consisting of 225 million shares in favor of all holders of record as of November 25, 2004. As of August 31, 2007, DMCI-HI owned 58.31 percent of the Corporation’s shares.
The corporation is the only large-scale coal producer in the Philippines and is engaged in surface open cut mining of thermal coal from its Panian mine, it said. The website gives data that says for the year ended December 31, 2006, the corporation accounted for about 22 percent of the country’s total coal consumption, or 88 percent of the domestic coal supply.
Its website data also shows its major stockholders were DMCI Holdings Inc., holding a 58.31 percent stake; PCD Nominee Corp. (NF) with 32.81 percent; another PCD Nominee Corp. with 04.39 percent; National Development Corp. with 04.09 percent, Privatization & Management Office with 00.28 percent; Dacon Corporation with 00.04 percent; and others with 00.08 percent.
“Historically, approximately 90 percent of the Company’s revenue streams come from the National Power Corporation (NPC). The NPC’s consumption of Semirara coal has steadily increased since the company worked on improving the quality of its coal. The company started washing 25 percent of its production in mid-1999 and as a result, its market has widened, to include other power plants and cement company.”
The company’s board of directors consists of David M. Consunji, chairman, and the following as members: Isidro A. Consunji, Victor A. Consunji, Jorge A. Consunji , Cesar A. Buenaventura, Herbert M. Consunji , Ma. Cristina C. Gotianun , Ma. Edwina C. Laperal, George G. San Pedro, Victor C. Macalincag, (Independent) and Federico E. Puno (Independent).