A government audit team found Semirara Mining and Power Corp.’s Molave mine expansion in Caluya, Antique “technically sound,” the company said Tuesday.
Semirara said in a disclosure to the stock exchange the audit report showed the Molave expansion project was compliant with environmental laws.
Semirara said it requested for a copy of the results of the environmental audit conducted on Aug. 30 to 31.
The audit team was composed of representatives from the Environmental Management Bureau Central Office, EMB Region 6, Provincial Environment and Natural Resources Office of Antique, Provincial Health Office of Antique and civil society organizations.
“In summary, the project is found to be technically sound considering that all aspects have been considered such as slope stability analysis, analyses of pumping tests of dewatering wells, GHG emission reduction program etc.,” Semirara said.
Semirara’s share rose 4.8 percent to close at P114.20 Tuesday, following the announcement.
The government report, however, instructed the company to conduct a dialog with residents who had complaints against the operations of the company.
“Although there were complaints received regarding the operation of the mining project, it is recommended that a dialog with the complainants be undertaken especially those who are not residents of the island to discuss the subject of the complaints and possible solutions,” the report said.
Semirara earlier received a show cause letter from the Environment Department which ordered the company to explain why its environmental compliance certificate should not be cancelled.
The department alleged that the company did not comply with one of the conditions provided in its ECC relative to its Molave coal mine expansion project.
The agency said there were complaints against Semirara over alleged massive clearing affecting the island ecosystem, degradation of water quality and siltation of the marine environment.
The audit team, however, said that “SMPC as far as we’ve observed during the audit is responsible for its actions.”
“Although they extracted the coal reserve of the island, they have an intensive care not only of the abandoned mine pit but their perseverance and hardwork to the marine environment shows their serious payback for what they took in the island’s natural resources,” the report said.
Semirara is the only large-scale coal producer in the country which is engaged in surface open cut mining of thermal coal in its Panian mine on Semirara Island, Antique.
The company received an amended ECC for its Molave project on Feb. 12, 2016.