Philippines' top coal producer set to make second shipment to Japan
01/06/2023 04:37
MANILA, June 1 (Reuters) - Top Philippine coal producer
Semirara Mining and Power Corp. SCC.PS said on Thursday it
will ship 50,000 tonnes of coal to Japan's Shikoku Electric
Power Co Inc. 9507.T , as it diversifies its export markets and
cuts reliance on China.
Semirara's second trial shipment to Japan for Shikoku's
700-megawatt power station follows its sale of 78,410 tonnes of
mid-grade coal to J-Power 9513.T in January, it said in a
statement.
"China is still our main foreign buyer but with their
industrial output growing slower than expected, we want to
develop other Asian markets like Japan," Semirara president
Maria Cristina Gotianun said.
Semirara's volume of coal shipments to China plunged 50% to
1.1 million tonnes in the first quarter versus in the same
period last year, though it accounted for 72% of the company's
total exports for the period.
The company accounts for 99% of the Philippines' coal output
and last year expanded its export markets to include buyers from
Vietnam, Cambodia, Thailand and South Korea.
It describes South Korea as a "steady market" with
first-quarter shipments of 300,000 tonnes, or a fifth of export
sales.
Semirara is targeting full-year sales of 15 million to 16
million tonnes, compared with 2022 sales of 14.8 million tonnes.
Most of its coal output is used to fuel domestic power plants,
including company-owned facilities.
The Philippines has of late been pushing for a shift away
from coal and oil in power generation, in line with its
decarbonisation goal. It has banned new coal-based power
projects while encouraging investments in natural gas and
renewables.
Semirara, however, remains optimistic about prospects for
domestic coal usage, citing the country's long-term economic
growth trajectory and the limited baseload power capacity
entering the local market in the next few years.
(Reporting by Enrico Dela Cruz; Editing by Kanupriya Kapoor)
((enrico.delacruz@thomsonreuters.com))