Semirara Mining, the Philippines largest coal producer and a member of the Consuji-owned DMCI Holdings group, expects its profits to increase substantially following the resumption of operations in Antique. Mining was temporarily halted last year owing to a landslide.
After resuming production early in 2014 the company has achieved higher production volumes and has reduced mining costs. Revenues from mining reached P5.4 billion in the first quarter of 2014, double the P2.7 billion 12 months earlier.
However, the company’s power plant business booked sales of P1.9 billion, down 36% from P3 billion in 2013. Semirara expected the contribution from the power generation business to continue its slump in the second quarter owing to technical problems at the 600MW Calaca plant in Batangas.
Technical problems hit the Calaca plant in the first quarter, leading to its shutdown. Repairs on the plant’s first 300MW unit have been completed while the second 300MW unit was expected to resume operations by the end of May.
The second phase of Calaca’s expansion, which involves construction of another 350MW plant, is expected to proceed this year. Semirara expected to sign the engineering, procurement and construction contract by the end of June.