INTEGRATED energy firm Semirara Mining and Power Corp. (SMPC) reported double-digit growth in its coal sales to local cement plants from January to March this year due to higher demand from local cement producers.
In a disclosure to the local bourse on Monday, SMPC said that from 147,000 metric tons (MT), coal sales volume rose 11 percent to 163,000 MT compared to the same period in 2016.
“Our coal production expansion is in line with the increasing requirements of our country for infrastructure and power. Next year, we hope to produce around 14 million metric tons, which will go mostly to local power and cement producers” SMPC President and Chief Operating Officer Victor A. Consunji said.
Listed SMPC supplies the coal requirements of LaFarge Holcim, Republic Cement, Northern Cement and Eagle Cement Corp.
The cement industry is one of the most energy-intensive manufacturing industries. Industry experts estimate that it requires around 200 kilograms of coal to produce one ton of cement. Coal is used to fire the preheater cyclone and rotary kiln, which heats raw materials in the pyro-processing stage of cement production.
According to the Cement Manufacturers’ Association of the Philippines (CeMAP), nearly 26 million tons of cement was sold in 2016 versus 24 million tons the year before.
Local cement players are planning to expand their production capacity in anticipation of higher private and public construction activities in the coming years.
The national government is allotting P8 trillion until 2022 to build more roads, railroads and bridges to usher in what many say will be a “golden age” of infrastructure in the Philippines.