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News > Semirara Mining Corporation Invests in the 2 x 300 MW Calaca Power Plants

Semirara Mining Corporation Invests in the 2 x 300 MW Calaca Power Plants

On 1 December 2009, the Board of Directors of Semirara Mining Corporation approved the investement of the Company in the 2 x 300 MW Batangas Coal-Fired Thermal Power Plant (BCFTPP) in Calaca, Batangas with an acquisition cost of US1.709M.

 

The investment was made by way of assignment from DMCI Holdings, Inc. (DMCI-HI), the winning bidder of BCFTPP, to the Company's wholly-owned subsidiary, SEM-Calaca Power Corporation (SCPC).

 

On 2 December 2009, the Asset Purchase Agreement (APA) and the Land Lease Agreement (LLA) between DMCI-HI and the Power Sector Assets and Liabilitites Management Corporation (PSALM) was sucessfully closed. Simultaneously, an Accession and Assignment Agreement was Executed between DMCI-HI, PSALM and SCPC, which formalized PSALM's consent to DMCI-HI's assignment of the APA and LLA to SCPC.

 

The acquisition of BCFTPP is both a defensive and an oportunistic investment for the Company. It is a defensive investment as the acquisition will protect the Company's coal supply contract with BCFTPP. It is opportunistic because as a stand-alone investment, it is expected to provide a fair return on investment and add value to the returns generated by the Company from its coal mining operations.