Semirara Mining and Power Corp. (SMPC) can now restart their mining operations.
As reported by Phil Star, The Department of Energy has finally lifted the suspension order against the mining company’s operations.
The company disclosed to the Philippine Stock Exchange the decision of the body, stating that it already received the official notice lifting the suspension and approving the resumption of its core business activity.
The approval did not come without a critical caveat, though.
According to the SMPC, the notice did not encompass the area adjacent to the former Casay Lake.
The company claimed that the DOE prohibited mining in that area until all liquefiable materials have been removed.
Semirara Mining and Power Corp Followed DOE Directive
Regardless, the lifting of the suspension serves as evidence that the Semirara already complied with all the conditions of a DOE directive.
It received the directive after a mudslide incident in its facility in Antique back in October.
The government has already validated said compliance and the lifting of the suspension further confirmed this.
In the said notice, the DOE stipulated that the SMPC already substantially adhered to all the conditions stated in the directive dated November 14, 2019.
The Energy Undersecretary Donato Marcos said earlier that the agency arrived at this conclusion after it conducted a thorough inspection of the company’s mine site.
The company has made sufficient changes that complied with the conditions set for lifting the suspension of its mining operations.
In the directive, the DOE recommended the company to reorganize its safety department to recruit a safety consultant.
The agency also made a recommendation for the company to identify which risk areas needed addressing and to come up with respective mining solutions for these areas.
The company received the suspension order after a mudflow incident in Semirara Island, Antique Province.
The tragedy took place on October 2.
SMPC Production Unaffected
It was expected that the suspension of the mining activities can naturally halt the company’s coal production and put a dent on the company’s output.
However, Semirara already said earlier that the output target for the year has already been satisfied.
Notwithstanding that positive announcement, however, the firm also said the suspension might lead to opportunity loss in production per day of as high as 40,000 to 45,000 metric tons.
Still, to date, the company’s total production is already 12 percent higher than the total 2018 production.
Total 2019 production stands at 14.5 million MT, while the total production for 2018 was only at 12.9 million.
At the same time, coal shipment also saw a substantial increase. It has now reached 14.6 million MT.
This is equivalent to a 26 percent rise from the 2018 figure, which was only at 11.5 million MT.
The Antique incident is not the first in SMPC’s mine site.
Back in 2013, a landslide also took place, but in Semirara’s Panian Pit. The tragedy led to significant fatalities.
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