The Consunji Group’s DMCI Holdings Inc. may be shelving its plan to develop a new cement manufacturing plant on Semirara Island that would have utilized by-products from the coal mining operations of Semirara Mining and Power Corporation (SMPC).
In an interview, DMCI Chief Finance Officer Herbert M. Consunji said they are postponing the Semirara cement plant due to the group’s recent acquisition of almost 90 percent of Cemex Holdings Philippines Inc., which they are renaming to Concreat Holdings Philippines Inc. (CHP).
Consunji, now also CHP President and CEO, noted that CHP’s Solid Cement has a new expansion plant in Antipolo, which is much closer to the main cement market of Metro Manila and key provinces in Luzon. Additionally, Apo Cement has a plant in Cebu which serves the Visayas region.
Producing cement on Semirara Island would necessitate shipping and transportation, adding to the product's cost.
Consunji also pointed out that their Coal Operating Contract (COC) from the Department of Energy will expire on July 14, 2027. Any plan to build a cement plant on Semirara Island will have to wait until the COC is renewed.
The cement manufacturing plant would rely on the coal mining operations for synergy and cost savings, as coal mine sites also contain materials used in cement production.
Besides coal, Semirara Island has substantial silica, limestone, and clay resources. The company has a pending application for a Mineral Production Sharing Agreement (MPSA). If approved, it will allow them to mine these resources.
On March 10, 2022, the Department of Environment and Natural Resources approved MPSA No. 352-2022-VI for SMPC’s Himalian Limestone Project. This covers 3,807.0571 hectares on Semirara Island, Caluya, Antique. The MPSA has a contract period of 25 years, renewable for a like period.
There are also another 120 million metric tons of in-situ coal inside the unopened Himalian Mine. SMPC plans to open the mine when demand for local coal exceeds five million metric tons per year. They will also consider opening it when cement demand increases enough to justify a cement plant.
“The ideal set-up in opening Himalian mine is to put up a cement plant right beside the pit since the overburden of Himalian is mainly limestone and silica, two major components of cement,” SMPC said.