Semirara sold more coal to cement firms

Listed energy firm Semirara Mining and Power Corp.’s (SMPC) coal sales to local cement plants for the first quarter of the year rose 11 percent to 163,000 metric tons (MT), from 147,000 MT a year earlier. 

The company said higher demand from local cement producers accounted for the growth as it supplied the coal requirements of LaFarge Holcim, Republic Cement, Northern Cement and Eagle Cement Corp.

SMPC also cited data from the Cement Manufacturers’ Association of the Philippines, which said nearly 26 million tons of cement were sold in 2016 versus 24 million tons the year before, with local cement players planning to expand production capacities in anticipation of higher private and public construction activities.

 “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 MT, which will go mostly to local power and cement producers,” Victor Consunji, SMPC president and chief operating officer, said in a statement.

 SMPC noted the cement industry is one of the most energy-intensive manufacturing industries with an estimated requirement of around 200 kilograms of coal to produce one ton of cement. Coal is used to fire the preheater cyclone and rotary kiln, which heat raw materials in the pyro-processing stage of cement production.

 Last week, the company announced its first quarter consolidated net income surged 52 percentto P4.42 billion,from P2.91 billion in the same period last year,driven by higher profitability of its coal business.

 Combined coal production from its Molave and Narra mines reached 4 million MT. Coal production increased 17 percent year-on-year to 4 million MT, from 3.4 million MT last year, due to higher excavating capacity.

 Total coal sales volume, including sales to the company’s own power plants,grew 24 percent to 3.6 million MT, from 2.9 million MT a year ago, as total energy sold rose 38 percent to 586 gigawatt hours (GWh) from 424GWh in 2016.

 Earlier, SMPC said it expects to increase coal production this year to around 13 million MT, ahead from last year’s 11.8 million MT.

 The coal that SMPC mines in Antique is graded as sub-bituminous with a heating value of 9,300 British thermal unit per pound. It is the highest quality of coal currently being mined in the country.

Source: Malaya