Govt reinstates coal trader accreditation of Semirara
The Department of energy (DOE) is no longer imposing a one-month suspension of Semirara Mining and Power Corp.’s (SMPC) coal trader accreditation, but maintained the latter’s liability for violating a department circular.
SMPC said Thursday it received a copy of a DOE resolution dated March 16, 2021, which modified the agency’s October 15, 2019 decision.
The amended order basically lowered the fine imposed on SMPC to
P610,000 from P1,735,000.
“Affirming SMPC’S liability of Section 3 of Department Circular 2012-05-0006 and ordering it to pay the corresponding fine therefore in the amount of P610,000,00,” the amended order read.
Also, the DOE removed the penalty of one-month suspension. Instead, the DOE issued a warning that SMPC “should exercise more prudence and care in conducting its coal trading related transactions in order to avoid similar issues and cases in the future.”
The DOE said SMPC was liable for violation of Section 3 of DOE circular, due to the coal trading it had engaged in with coal trader gold Anchorage.
SMPC filed a motion for reconsideration upon the issuance of the Doe’s October 2019 decision. It then continued with its coal trading activities, saying it had to proceed to honor its coal supply commitments to customers.
The questioned coal trading activity occurred on May 23, 2019 when
SMPC reportedly supplied 4,768.73 metric tons of Semirara coal to gold Anchorage.
SMPC claimed that gold Anchorage had given its assurances to it that it has accordingly submitted and applied for a coal accreditation certificate with the DOE.
The company said earlier that it is setting aside P4 billion for its capital expenditure (capex) program this year after it deferred last year’s capex due to the impact of the Covid-19 pandemic on its business.
Of the P4 billion, SMPC will utilize P2.9 billion to purchase mining and support equipment for the coal business. The rest will be split between Sem-calaca Power Corp. and Southwest Luzon Power generation Corp. for their preventive and maintenance programs.