Semirara Mining and Power Corp. (SMPC) is keen on further expanding its power generation business, including a possible investment in liquefied natural gas (LNG).
“As we embark on the next chapter, our primary challenge lies in sustaining our company’s growth and success. We are exploring alternative revenue streams, such as expanding our power generation capacity and pursuing new mining opportunities beyond Semirara island,” said Isidro Consunji, SMPC chairman and chief executive officer, during the company’s virtual stockholders’ meeting Tuesday.
“The Calaca (Batangas) location is ideal for LNG as well as coal. The question is just an issue of business viability – but physically and technically, there is no reason why SMPC cannot go into LNG,” Consunji said.
Last year, SMPC booked a record high consolidated net income reaching P39.9 billion in 2022, a 146 percent jump from the previous all-time high of P16.2 billion in 2021, attributed to higher domestic coal shipments and improved spot electricity sales alongside elevated market prices.
For the period, its domestic coal sales jumped 33 percent from 5.8 million metric tons (MT) to an historic high of 7.7 million MT even though exports slumped 24 percent from 9.4 million MT to 7.1 million MT.
SMPC also said the average selling price of Semirara coal hiked 91 percent from P2,695 to a record level of P5,136 in 2022, on the back of soaring index prices and higher-grade coal sold.
However, Consunji said the plan to transfer the operations of affiliate firm DMCI Mining Corp. from parent DMCI Holdings Inc. will no longer be pursued due to cost considerations.
“We’ve studied the proposed transfer of DMCI Mining from DMCI Holdings to Semirara. However, our finance people concluded that the cost involved makes it very expensive. Secondly, the ability to determine a fair price for both set of stockholders – DMCI and Semirara, is extremely difficult considering that the bulk of the mining assets of DMCI Mining is not fully permitted so it will probably not happen anymore,” Consunji explained.
SMPC is the only vertically-integrated power producer in the country that mines its own fuel, allowing it to generate affordable baseload power.
