SMPC steps up modernization efforts

Semirara Mining and Power Corp. (SMPC) yesterday said it had laid out about 70 percent of its P5-billion mining equipment capital expenditure in the first half of this year.

Along with SMPC’s mine expansion and fleet modernization program, the integrated energy firm is pushing coal output to the 16-million-metric-ton mark within the next two or three years.

Toward this, SMPC president and chief operating officer Victor A. Consunji said 46 off-highway dump trucks, six hyraulic excavators and other support machinery, had been delivered to the mine site in Semirara Island.

Consunji said the company was expecting to receive by the end of the year 21 more heavy equipment, which was also part of the P3.5-billion capital expenditure program for January to June.

According to Consunji, first-semester equipment expenses were three and a half times the amount spent in the same period of 2016, which was about P1 billion.

“The new dump trucks and hydraulic excavators are designed to be more fuel efficient so they will contribute to the reduction of our carbon footprint and operating costs,” he said.

“This is just the start of our fleet modernization program,” he added. “We plan to continue this next year by decommissioning our aging heavy equipment and replacing them with newer models.”

Citing data from the Japanese supplier of the heavy equipment, SMPC said fuel consumption of the new dump trucks may be reduced by as much as 14 percent compared to older models.

In turn, this would ease cost pressure as fuel expenses represent 40 percent to 45 percent of SMPC’s mining costs.

“Our goal is to improve our operational efficiency and environmental performance,” Consunji said.

Source: Philippine Daily Inquirer