SEMIRARA Mining and Power Corp. (SMPC) expects its capital expenditure (capex) budget for this year to reach P6.9 billion, with a significant portion going to its coal business.
Around P5.8 billion is allocated to the coal segment for “refleeting initiatives and additional acquisition of mining and support equipment,” the company said.
SMPC’s subsidiary SEM-Calaca Power Corp. accounted for P0.7 billion, while P0.4 billion is allocated to Southwest Luzon Power Generation Corp. Both amounts are for maintenance activities and initiatives to enhance fuel and feed systems.
The 2025 capex would be higher than the budget the company allocated for last year, which amounted to P6.6 billion.
SMPC reported 16.5 million metric tons (MT) in coal shipments for 2024, higher by 4.4% from the previous year, driven by stronger demand from China and domestic markets.
Foreign shipments increased by 4% to 8.4 million MT, while domestic shipments rose by 4% to 8 million MT.
SMPC President and Chief Operating Officer Maria Cristina C. Gotianun said that the company hit its maximum coal production of 16 million MT under its existing environmental compliance certificate for the third consecutive year.
For the third quarter, SMPC’s earnings grew by 8% to P3.1 billion due to reduced contribution from the coal segment amid stabilizing market indices.
“While we anticipate market prices to further normalize in 2025, we remain focused on strengthening our customer network and enhancing operational efficiencies to effectively support national energy security and meet the growing demand from the industrial and cement sectors,” Ms. Gotianun said. — Sheldeen Joy Talavera
