Semirara Mining and Power Corporation (SMPC) is an emerging key player in the Philippine power industry, with its significant coal reserves and increasing power generation capacity.
Incorporated in the Philippines on 26 February 1980, SMPC has exclusive rights to explore, extract and develop the largest coal mine in the country. The mine site is located in Semirara Island in Antique province.
After commencing commercial operations in 1983, the Company struggled through operational inefficiencies, debt restructuring, loan foreclosures, falling coal prices and the devaluation of the Philippine Peso.
In April 1997, Philippine Stock Exchange-listed DMCI Holdings, Inc. (DMC) acquired a 40% interest in SMPC’s Common Shares, including PHP2.5 billion of its outstanding loans.
Following SMPC’s sustained financial difficulties, DMC agreed to a debt-to-equity conversion in 1998, raising its total interest in SMPC to 74%.
After gaining a controlling interest in SMPC, DMC appointed a new management team in August 1999. The team was composed of local and expatriate staff.
Since then, SMPC has adopted flexible, cost-efficient and more advanced mining techniques to increase the quantity and improve the quality of its coal production. From an initial annual product coal production of 806,451 tons run-of-mine (ROM) coal in 1997, the Company was able to produce 7.12 million MT ROM coal in 2013.
DMC currently holds 56% ownership of SMPC.
DMCI Mining Corp. was incorporatedon May 29, 2007 primarily to carry on the business of mining, developing, exploiting, extracting, milling, concentrating, preparing for market, manufacturing, buying, shipping and transporting, all kinds of ores, metals and minerals. It involves surface mining and direct shipping of nickel laterite ore and is conducted through simple benching operation using excavators and trucks in Sta. Cruz and Candelaria, Zambales.
In October 2012, DMCI Mining acquired 17% stake of Daintree Resources Limited in Toledo Mining Corp (TMC) for GBP 3.4 million.
In 2013, DMCI Mining increased its interest in TMC by acquiring additional shares through a mandatory cash offer to TMC’s shareholders representing additional 81.09% interest.
With significant operations in the Zambales and Palawan provinces, DMCI Mining has been a continuing contributor to local government and community projects providing significant assistance not just in infrastructure but also in job generation among others. It is also compliant to national and local environmental regulations.