TWO government audit reports clearing Semirara Mining and Power Corp. (SMPC) had prevented power outages and its consequent economic dislocation.
“We always protect the environment while extracting coal. The audit reports confirm that commitment. We are responsible miners and keep upgrading our systems and processes when new technologies come to the market,” said Ruben Lozada, SMPC resident manager. The Department of Energy (DOE) and the Environmental Management Bureau (EMB) of the Department of Environment and Natural Resources (DENR) issued separate audits last week, saying SMPC complies with all government regulations on the protection of the environment.
“The closure of the Semirara coal mine would have been disastrous for the economy and the public, and possibly could create unnecessary political risks for the administration.
“Without coal, there would be outages, business disruption and retrenchment, and in the case of affected cement companies, perhaps a supply lack that could affect infrastructure and housing,” Lozada said.
The company accounts for 97 percent of local coal production used for power generation and by some cement companies.
Coal is a constant daily source of electricity and is among the cheapest feedstock compared to bunker and gas, among others. It accounts for 45 percent of total power generated last year. Without coal, electricity would be more expensive. Based on August data, electricity from coal plants owned by SMPC’s sister company was sold to Manila Electric Company (Meralco) for only P2.517 per kilowatt-hour (kWh), the lowest. All others ranged from above P3 all the way to more than P8 per kWh, Lozada said. The DOE audit team verified the mining operation of SMPC does not discharge toxic materials to the mangroves, the sulfur content of the coal if below 1 percent, there is no seaweed farm affected, and the dumping of overburden materials does not affect the nearby housing communities, a copy of an audit report stated.