July 22, 2015

ECC of SCC’s mining operations to be suspended indefinitely by DENR

The Philippine Daily Inquirer today reported that the Environmental Compliance Certificate (ECC) issued to Semirara Mining and Power Corp’s (SCC) coal mine project will be suspended indefinitely by the Department of Environment and Natural Resources (DENR). A DENR official said that the cease-and-desist order(CDO) suspending the ECC will take effect until SCC implements approved mitigation measures to prevent any future incidents.

The official added that suspending the company’s ECC will have a bigger impact on SCC since it cannot resume mining operations even if the CDO issued by the Department of Energy (DOE) and the DENR regional office are lifted. The DOE and the DENR office in Western Visayas earlier issued separate CDOs against SCC’s coal mining operations.

Our take: A prolonged suspension of SCC’s coal mining operations would eventually lead to huge revenue losses for the company. According to a news report posted at ABS-
CBNnews.com, SCC’s remaining stockpile of coal (800 MT) is good for only three weeks. SCC sold approximately 8.89 MT of coal in 2014. – WealthSec