In an effort to diversify its export markets and reduce reliance on China, Semirara Mining and Power Corp. stated that it will ship 50,000 tonnes of coal to Shikoku Electric Power Co Inc. in Japan.
Semirara mentioned that their second trial shipment to Japan, destined for Shikoku’s 700-megawatt power station, comes after their previous sale of 78,410 tonnes of medium-grade coal to J-Power in January.
In a statement released on Thursday, SMPC president and chief operating officer Maria Cristina Gotianun said, “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.”
In the first quarter, Semirara saw a 50% drop in coal shipments to China from the same period last year, falling from 2.2 million metric tons to 1.1 million metric tons, which accounted for 72% of the company’s total exports.
The company’s share of the Philippines’ coal output stands at 99%, and it has diversified its export markets to encompass buyers from Vietnam, Cambodia, Thailand, and South Korea.
The company refers to South Korea as a “steady market,” as it constituted one-fifth of their export sales with first quarter shipments amounting to 300,000 tonnes.
Semirara aims to achieve sales of 15 million to 16 million tonnes for the full year, surpassing its 2022 sales of 14.8 million tonnes. The majority of its coal production is utilized to power domestic power plants, including those owned by the company.
In line with its decarbonization objective, the Philippines has been actively promoting a transition away from coal and oil in power generation. To support this goal, the country has implemented a ban on new coal-based power projects and is actively encouraging investments in natural gas and renewable energy sources.
Despite the prevailing circumstances, Semirara maintains a positive outlook on the domestic coal market, highlighting the Philippines’ long-term economic growth and the limited availability of baseload power capacity expected to enter the local market in the coming years.
