By Lenie Lectura – July 11, 2019
from Business Mirror
SEMIRARA Mining and Power Corp. (SMPC) has asked the Department of Energy (DOE) to lift the cease-and-desist order (CDO) imposed on its coal trading operations.
The DOE said SMPC violated the guidelines on the Accreditation of Coal Traders and Registration of Coal End-Users.
SMPC was told to submit its verified answer allegedly for illegal coal trading operation in Pulupandan Port in Pulupandan, Negros Occidental, until July 7. At the same time, a CDO to SMPC’s coal trading activities and operations was issued by the agency.
The Consunji-led firm said Wednesday that it wrote the DOE last July 5 to ask the DOE to immediately lift the CDO/suspension and to not impose any administrative fine.
SMPC supplied Semirara coal to a buyer on May 23 for a trial shipment of 4,768.73 metric tons in order to tap additional markets, with representation on the part of the buyer that it has accordingly submitted and applied for a Coal Accreditation Certificate with the DOE on April 5.
Under the rules, the DOE will issue the Certificate of Accreditation and/or Registration or reject the application within 15 working days from receipt thereof.
On shipment date, the buyer was unable to submit the said accreditation as it was still pending with the DOE. Thereafter, SMPC stopped doing business with the buyer.
“In order not to interrupt SMPC’s ongoing operation and renege on its contractual commitments to its coal buyers, SMPC have requested reconsideration of the DOE order and that the implementation thereof be held in abeyance pending resolution of the alleged violation, and allow SMPC to proceed and continue its current trading activities and operations,” said SMPC. The company said there is an ongoing discussion with the DOE to have this matter resolved immediately and that it does not expect the incident to have any material effects on its business, financial condition and operations.