Consunji Group forms new power unit

MANILA, Philippines - The Consunji Group has formed a new power company to strengthen its presence in the Philippine energy sector, which is currently dominated by some of the country’s richest clans including the Aboitiz and Lopez families.

Consunji-owned Semirara Mining Corp., a publicly-listed coal producer, has incorporated Semirara Energy Utilities Inc. to provide alternative electricity service to remote and unviable areas, the company said in a disclosure to the Philippine Stock Exchange.

Specifically, Semirara Energy would provide power to three areas in Semirara, Tinogboc and Alegria in Caluya, Antique.

The three barangays are within the franchise area of the Antique Electric Cooperative Inc. (Anteco) but in April 2011, the cooperative said it was not possible to operate in these remote areas.

The Electric Power Industry Reform Act of 2001 allows qualified third parties (QTPs) to provide alternative source of power to unviable and remote areas.

DMCI Holdings, the investment holding firm of the Consunji Group, is largely known for its construction business but in 2006, it formed DMCI Power Corp., its power generation company.

In 2009, the Consunjis formed Sem-Calaca Power Corp., aimed primarily to acquire, expand and maintain power- generating plants, develop fuel for generation of electricity and also sell electricity.

Semirara Mining is the country’s biggest coal producer.

In the January to September period last year, the company’s consolidated net income declined nine percent to P4.71 billion from P5.2 billion a year before.

Of the amount, the company earned P3.21 billion from its coal business and P1.5 billion from its power generation segment, Sem-Calaca.

The company attributed the decline in earnings to the lower average selling price of both coal and energy during the period.

On Feb. 13, Semirara Mining reported that its large-scale coal mine in Antique collapsed and trapped at least five miners.