Frequently Asked Questions | Sitemap | Contact | Home
 
 

Our Business

Company Profile

Mission, Vision and Values

Board of Directors, Management Team and Executive Officers

Organizational Chart

Group Corporate Structure

Shareholdings Structure

Articles of Incorporation and by-Laws and all amendments thereto

 

Our Business

Semirara Mining Corporation is the largest coal producer in the Philippines and is engaged in surface open cut mining of thermal coal from its Panian mine on Semirara Island, in Antique province. Semirara Island covers an area of 55 square km and is located 350 km south of Manila. Proclamation No. 649 dated November 20, 1940, was issued by President Manuel L. Quezon proclaiming the islands of Semirara, Sibay and Caluya province of Antique as coal mining reservation. While coal resources have been discovered at four separate sites on Semirara Island, namely Panian, Bobog, Himalian and Unong, the Company operates one mine at Panian. Operations at Unong mine ceased in 2000 after 17 years of extraction. The Company’s coal is characterized as sub-bituminous-B and is appropriate for use in a wide range of combustion facilities. Taking advantage of the Company’s strategic location and the Company’s position as the largest producer of coal in the Philippines, the Company’s coal is sold domestically to power plants, cement plants, paper mills, textile dying plants, canneries, food factories, a sugar mill, and a fertilizer plant. In 2007, the Company made its maiden shipment to China that signified its successful foray into the export market. Since then, the Company further expanded its market base and is now selling its coal to China, India, Hong Kong, Japan, Taiwan, and Thailand.

The Company has significant reserves which supplies a growing domestic demand for coal. In his coal reserve report dated April 30, 2010, Engr. Bomasang estimates the remaining mineable reserves and recoverable reserves at Panian at 47.12 million MT and 42.41 million MT, respectively.

On July 11, 1977, the Government, through its former Energy Development Board, awarded a 35-year COC to a consortium composed of Vulcan Industrial & Mineral Exploration Corporation, Sulu Sea Oil Development Corporation and Seafront Petroleum and Mineral Resources, Inc. that subsequently assigned said COC to the Company on April 7, 1980. On July 27, 1977, PD 972 was amended by PD 1174: (a) increasing coal operators' maximum cost recovery from an amount not exceeding 70% to 90% of the gross proceeds from production and (b) increasing the amount of a special allowance for Philippine corporations from an amount not exceeding 20% to 30% of the balance of the gross income, after deducting all operating expenses. As a result, the Company's COC was subsequently amended on January 16, 1981 reflecting said changes.

On June 8, 1983, the Ministry of Energy (now the DOE), issued a new COC to the Company, incorporating the foregoing assignment and amendments. The COC gives the Company the exclusive right to conduct exploration, development and coal mining operations on Semirara Island until July 13, 2012. On May 13, 2008, the DOE granted the Company’s request for a 15-year term extension of its COC or until July 14, 2027.

On November 12, 2009, the COC was amended further, expanding its contract area to include portions of Caluya and Sibay islands, Antique, covering an additional area of 3,095 and 4,096 hectares, respectively.

In return for the mining rights granted to the Company, the Government is entitled to receive annual royalty payments consisting of the balance of the gross income after deducting operating expenses, operator’s fee and special allowance. If the Company incurs a loss in any year, the Company will request the DOE for a deferral of payment of the share of the Government to the extent of loss incurred by the Company in said year. The COC does not provide a penalty in case of failure to remit the annual royalty payments. The parties may renew the COC upon such terms and conditions as they may agree upon.

The registered and principal office of the Company is at 2/F DMCI Plaza, 2281 Don Chino Roces Ave., Makati City, Philippines.

The Company’s common stock is listed on the Philippine Stock Exchange under the symbol “SCC”.

 

Semirara Mining Corporation 2F DMCI Plaza Building, 2281 Chino Roces Avenue Extension, Makati City, Philippines 1231 Telephone: (+632) 888-3055 Fax No.: (+632) 888-3955