It is reported that Semirara Mining Corporation has secured the Department of Energy’s go signal for its proposed contract amendments to coal mining exploration ventures in Antique.

In a disclosure to the Philippine Stock Exchange, the company noted that its Coal Operating Contract No 5 was already afforded with proposed second amendments, effectively coordinating its coal blocks to also cover some 3,000 and 4,200 hectares in Caluya and Sibay Islands respectively.

The amended contract signed by Mr Angelo T Reyes energy secretary of DoE and Victor Consunji president of SMC stipulated that “In consideration of the amendment of the contract area, the operator will provide PHP 400,000 assistance in kind to the department to be paid in 2 tranches.”

COC No 5 was first granted by the DoE an extension of 15 years from July 13th 2012 to July 14th 2027, anchored on the provisions of Article X11 Section 2 of the 1987 Constitution, noting that such is allowed by relevant laws and statutes.

With the contract’s term lengthened, Semirara Mining subsequently sought last June the DoE’s imprimatur for it to be bequeathed with a Coal Reconnaissance Permit covering at least 24 blocks in Sibay and Caluya Islands. This will be an addition to the original 13 coal blocks covered by COC No 5.

Semirara Mining noted that it wrote the department requesting amendment to COC No 5 contract area to include coal bearing areas in Caluya and Sibay Islands which are located within the declared coal reservation areas. It added that its bid for contractual modification was a result of its geophysical and geological reconnaissance evaluation of the presence of coal occurrences in the specified areas.

Semirara Mining’s mandate to undertake coal mining operations in Antique was underpinned by the transfer of rights then held by Vulcan Industrial and Mineral Exploration Corporation, Sulu Oil Development Corporation and Seafront Petroleum Corporation to the Consunji controlled firm through a deed of assignment inked in 1980 that was approved later on by the defunct Bureau of Energy Development.

The coal exploration and production firm is getting aggressive on output prospects targeting at least 5.0 million tonnes this year so it can strategically cater both to the needs of the local and export markets.

(Sourced from mb.com)