Semirara Mining and Power Corp. (SMPC), headed by CONSUNJI, has set aside P4 billion for its capital expenditure (capex) program this year, with the majority of the funds heading toward the procurement of machinery.

The mentioned integrated energy corporation stated Monday’s regulatory submissions at P2,9 billion for the purchase of mining machinery for the coal industry. Sem-Calaca Power corp. & Southwest Luzon Power Generation Corp. would split the remaining P1,2 billion on preventive and repair plans.

The group plans to rebound this year, as its coal and power companies were affected by a demand weakness as a direct consequence of Coronavirus Disease 2019 (COVID-19) pandemic last year, according to Maria Cristina C. Gotianun, President and Chief Operating Officier of the SMPC.

“The extent of our recovery will, however, rely largely on how demand and prices act after the vaccine roll-out, COVID-19 infections and the loosening of quarantine restrictions,” said Mrs Gotianun.

In 2021 SMPC is intended to manufacture 13 millions of tons of coal in the North Block 7 in Molave Mine, Antique, which equates almost to the output of the business last year.

The company voluntarily postponed its mine operations in the region in December last year in order to enable the mining staff and professional advisors to monitor the water accumulation of Block 7 swamps.

SMPC announced a combined net profits after tax of P3.29 billion for 2020, a decrease of 66 percent due to the lower turnover. Last year, the gross sales decreased by 36.2 percent to P23.3 trillion a year.

The company’s coal output decreased 13.2 percent from 15.2 million tons in 2019 to 13.2 million tons as a consequence of delayed mining activities last year.

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