Semirara Mining and Power Corp. (SMPC) of the Consunjis is set to expand its coal export market by conducting a second trial shipment to Japan.
With a focus on reducing dependency on China, SMPC aims to diversify its customer base and tap into new Asian markets.
The company plans to export 50,000 metric tons (MT) of Semirara coal to Shikoku Electric Power Corporation for its coal-fired ultra-supercritical power station.
SMPC’s president and COO, Maria Cristina C. Gotianun, highlighted the importance of exploring other markets amid slower growth in China’s industrial output.
While China remains the main foreign buyer, SMPC seeks to develop relationships with other Asian countries, with Japan being a key target.
In the first quarter, Semirara coal shipments to China dropped by 50 percent, representing 72 percent of total exports. This prompted the company to seek new opportunities.
SMPC’s trial shipment to Japan earlier this year was successful, selling over 78,000 MT of mid-grade coal to utility firm J-Power.
South Korea remained a stable market, accounting for one-fifth of export sales at 300,000 MT.
For 2023, SMPC aims to export around 30 percent of its full-year sales target, which is estimated at 15 to 16 million MT.
However, the first-quarter results for SMPC’s standalone coal revenues and net income experienced declines due to high base effect and topline weakness. Net earnings slumped by 51 percent to P7 billion as revenues fell 40 percent to P15.5 billion.
