LIGHTNING STRIKES TWICE File photo shows the Semirara open-pit coal mine where five workers went missing and never found after a landslide in February 2013. A similar episode happened on Friday at the same site in the DMCI-owned Semirara Mining and Power Corp in Antique. RAFFY LERMA
The Department of Energy (DOE) on Friday suspended operations at the DMCI-owned Semirara Mining and Power Corp. after a landslide at an open-pit mine of the company in Antique province that killed five workers.
Four other workers remains missing and presumed dead at the landslide site at Semirara’s Panian mine pit as of press time.
It was the second deadly landslide at the Panian mine, located on Semirara Island off northwestern Antique.
On Feb. 13, 2013, the western wall of the mine collapsed on 13 miners who were taking a break from work.
READ: After disaster, Semirara life redefined
Three of the miners got out alive, five were killed and another five were never found.
Work resumed at the mine after a four-month suspension, only for tragedy to strike again on Friday.
READ: Semirara probes mining accident
Impact on market
Semirara is the largest coal producer in the Philippines, supplying 94 percent of the country’s coal needs.
Industry analysts anticipated the suspension of Semirara to have an impact on the market.
“It’s one risk faced by mining companies. Definitely, there will be a knee-jerk reaction from investors when the market opens on Monday. But the company still has a few days from now to control the situation. If the slide is not controllable, then the impact will be bigger,” said Astro del Castillo, managing director at First Grade Finance Inc.
He said similar accidents caused by climate change had affected mining companies in other countries.
“What’s important is to prevent this from getting out of control, that reaction is quick so as not to suspend their operations for too long,” he said.
“The accident in the first quarter of 2013 can serve as a guide on the possible impact on Semirara,” said Jose Mari Lacson, head of research at stock brokerage Campos Lanuza and Co.
“The main variable here is how long the DOE will keep the operations of Semirara suspended. It took around two months before coal production to fully resume. Because of the short suspension, the impact on earnings in that year was minimal,” Lacson said.
“But because this is the second time an accident has occurred, the added risk is that the DOE may take a longer time in deciding if the pit is safe. If weather was a factor, additional controls that could be imposed given the increased frequency of rains may also slow down some aspects of the operation. In general, though, investors may just see this as a temporary setback and should not affect the valuations in the long term,” he said.
Semirara is valued in the local stock market at P151.6 billion.
The company has integrated its business as a coal supplier or producer with power generation.
Apart from feeding its own power plants, Semirara sells coal to other power plants, cement plants and other industrial companies.
The company also exports coal.
Semirara said the landslide happened at 3:45 a.m. amid heavy rain.
The company said it was investigating the accident with help from the authorities.
Earlier Friday, Antique Gov. Rhodora Cadiao said three workers died and rescuers were digging to recover six others who were buried alive.
Search going on
“Three workers were found and taken to a hospital but they were declared dead on arrival,” Cadiao said, adding rescuers were using heavy equipment to recover the six missing workers.
Cadiao said it was raining heavily for days on the mine site. She gave an earlier time for the accident that given by Semirara.
“The accident happened around 3 a.m. while the workers were working on a water system,” Cadiao said.
“Precautionary measures should have been in place,” she said. “This will undergo [an] investigation. I hope there is no negligence on the part of the contractor.”
Later Friday, Cadiao said the bodies of two of the missing workers had been recovered, raising the death toll to five.
She said the four still missing were “presumed dead.”
The Office of Civil Defense in Western Visayas said 13 workers were caught in the landslide. It said nine of the workers were killed and four got out alive.
But the municipal government of Caluya, from which the 5,500-hectare Semirara Island is administered, issued a statement indicating that 14 workers were involved. It identified the dead as Alexander Nudo, Ricardo Panes and Arnold Omac.
The statement from the office of Caluya Mayor Genevive Lim-Reyes identified the missing as Danilo Bayhon, Noel Penolla, Diczon Daupan, Aryan Catulay, Generoso Talaro and Bernie Manriquez.
The two who were found dead later were not immediately identified.
It said five workers survived the landslide: Brendo Tuarez, Nelson Villamor, Patrick Morgado, and two others identified only by their surnames, Entible and Cabrera.
Police investigation
The Western Visayas Police Regional Office in Iloilo City sent a team to the mine to help in the search for the missing workers and assist the Antique police in the investigation.
Vicente Malig, assistant administrative manager at Semirara, said a portion of a 61-meter mound of soil at the mouth of the pit fell on the workers as they were extracting soil.
He said five dump trucks, an excavator and a bulldozer were also buried in the 12-m pit.
Senior Supt. Edgardo Ordaniel, Antique police director, said the pit was 300 m below sea level, with a diameter of 70 meters.
Ordaniel said he got the information from a security officer at the mine. He said company security barred police from the area.
Semirara said it was helping the families of the workers who perished in the landslide.
“Management has condoled with the families of the victims and is giving them full support,” Semirara said in a statement.
“It is also coordinating with national and local authorities to keep them updated on the search and rescue efforts and other necessary measures, including ensuring the adequate supply of coal for power generation since it has stopped operations in the affected area in compliance with an order from the Department of Energy,” the company said.
The DOE suspended operations at the mine and a government panel would investigate the landslide, said Zenaida Monsada, officer in charge at the department.
“Our prayers are with the families of the victims and we have directed Semirara Mining Corp. to focus on search and rescue operations,” Monsada said in a statement.
She said the DOE would follow the investigation.
Semirara said advisories would be issued regularly to keep the public informed about developments in the investigation.
In the know
Semirara Mining and Power Corp. (SMC), a subsidiary of DMCI Holdings Inc., is the Philippines’ biggest producer of coal, accounting for 97 percent of the 8.41-million-metric-ton domestic production in 2014, according to the Department of Energy (DOE).
In 1999, SMC took over the then government-owned Semirara Coal Corp. In 2008, the DOE extended SMC’s coal operating contract by another 15 years, or up to 2027. The original contract was supposed to expire in 2012.
The contract gives exclusive right to SMC to explore, develop and mine for coal on Semirara Island, off Antique province.
The DOE in 2009 also expanded the coverage of the contract from the original 5,500 hectares on Semirara to 12,700 ha, including 3,000 ha in Caluya, the main island, and 4,200 ha on Sibay Island.
The mine site is located on Semirara, one of the nine islands comprising Caluya town in Antique. Semirara has three villages.
The company employs more than 2,600 employees, with about 4,000 on the island relying on its operations for livelihood.
SMC’s consolidated net income fell in 2014 to almost P6.9 billion, from P7.53 billion in 2013.
The company has also been the subject of several protests and environmental issues.
On Feb. 13, 2013, a part of the western wall of the Panian mining pit operated by SMC collapsed on 13 miners taking a coffee break. Three managed to get out, five were killed and another five remained missing.
Operations of the mining company were suspended for a few weeks. The company was cleared of negligence by the DOE and allowed to resume full operations in June 2013.
In July 2014, residents of Barangay Tinogboc on Semirara pleaded for assistance from government agencies and environmental advocates to help them cope with the effects of coal mining on their island’s marine resources. The complainants also alleged dislocation of residents.
Sources: Inquirer Archives, SMC website
With reports from Ronnel W. Domingo and Dona Z. Pazzibugan in Manila; Nestor P. Burgos Jr. and Joel Franco, Inquirer Visayas; AFP, AP
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