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The
Board of Investments (BOI) recently approved the grant
of full incentives to the P6.148-billion expansion
project of Semirara Mining Corp.’s coal mining facility
in Antique.
Semirara
Mining, which holds a coal-operating contract with the
government, is expanding its activities due to the
projected increase of annual coal demand.
Its
proposed expansion project requires the acquisition of
new imported equipment, as well as modernization,
rehabilitation and retooling of existing equipment.
The
project qualified for incentives under the 2007
Investment Priorities Plan’s (IPP) energy listing. The
project site, Antique, is also one of the provinces
listed as less-developed area in the IPP roster.
The
expansion proposal will receive a host of perks that
includes income tax holidays and duty-free importation
of raw materials and capital equipment.
Once
completed, the project will increase Semirara’s coal
production by 1.4 million metric tons—effectively
securing the country’s supply of coal and helping the
company increase export sales.
Semirara
Mining has an existing coal-supply agreement with the
National Power Corp. for up to 2.4 million metric tons
of coal. It is also providing the coal requirements of
several independent power producers, cement companies
and other paper and chemical producers.
“On the
average, the company is supplying around 90 percent of
its coal production to the coal fired-power plants in
the country,” the project’s profile at the BOI said.
The
project, which will start commercial operations next
month, will employ up to 450 persons. |
