Semirara confident of winning new contract

Consunji-led Semirara Mining and Power Corp. (SMPC) sought to calm investors selling down its stock, as well as that of parent company DMCI Holdings Inc., by expressing confidence it will win the bid for a new coal operating contract (COC) after the government said it will not extend the existing mining permit.

- By JAMES A, LOYOLA

COL Financial Group Inc. senior research manager George Ching said the firm’s management expressed confidence in winning the bid during an emergency briefing with analysts and investors following reports that the Department of Energy (DOE) is not extending its COC.

“This is mainly due to the company’s technical capabilities in operating large-scale coal operations. Furthermore, the remaining mine life of the Semirara coal mine might not be sufficient to justify the huge financial investment required for new entrants,” he explained.