Integrated energy company Semirara Mining and Power Corp. (SMPC) is ready to spend P4 billion this year to support its recovery program.
SMPC is targeting to produce 13 million metric tons (MMT) of coal this year, roughly equal to its actual production volume in 2020 because of ongoing remedial measures in Molave North Block 7 (NB7).
Bulk of this year’s capital budget or P2.9 billion will cover the purchase of mining and support equipment for the
The rest will be split between Sem-Calaca Power Corp. and Southwest Luzon Power Generation Corp. for their preventive and maintenance programs.
“2020 was a tough year for us because our coal and power businesses were hit by pandemic-induced market weakness. We are determined to stage a recovery this year,” said SMPC president and COO Maria Cristina C. Gotianun.
She, however, emphasized that the magnitude of the company’s recovery would largely depend on how demand and prices behave following the rollout of vaccines, the surge in COVID-19 cases and the further easing of quarantine restrictions.
In December last year, the company voluntarily deferred mining activities to allow its technical consultants and mining personnel to implement remedial measures to manage the water build-up in the Molave North Block.