MVP-led Philex Petroleum unit suspends coal mining biz
MANILA, Philippines - Falling coal prices has led the group of Manuel V. Pangilinan to suspend its Mindanao coal mining operations for about 6 months.
In a disclosure on Wednesday, January 9, Philex Petroleum Corp. told the exchange that its coal mining project in Diplahan, Zamboanga Sibugay is under a 6-month "review" after a significant decline in coal prices "adversely affected" the company.
Brixton Energy and Mining Corporation (BEMC), the corporate vehicle for Philex's coal mining project, said the detailed review will cover the business's operations and prospects.
"Whilst this assessment is being undertaken, BEMC has determined that it would be prudent to suspend underground mining operations," it said.
"In the meantime, activities will be confined to maintenance and repair of the coal mine, and to processing and marketing of existing coal inventory," BEMC added.
Oversupply of coal in the global markets has pulled world coal prices down.
BEMC is a wholly owned subsidiary of Philex Petroleum, which earlier posted a January-to-September 2012 net loss of P132 million as against a net income of P472-million in the same period the year before.
The reversal was blamed on lower petroleum revenues from Service Contract 14 Block C-1, or the Galoc oil field off Palawan, where it holds a total direct and indirect interest of 60.49% through its majority stake in Forum Energy Plc.
Philex Petroleum's revenues dropped by 60% to P154.4 million at end-September 2012. Of this amount, P120 million came from petroleum sales by Forum Energy, while the remaining was generated from the coal sales of BEMC. - Rappler.com