MVP-led Philex to shut down coal mine
MANILA, Philippines – After 6 months of suspending operations, the coal mine in Mindanao by the country's top energy and hydrocarbon business under Manuel V. Pangilinan is closing down.
In a disclosure to the Philippine Stock Exchange Monday, September 2, Philex Petroleum said that the closure of its coal mining site in Diplahan, Zamboanga Sibugay has been reported to the Department of Energy (DOE).
Last January 1, negative margins in the previous year brought Brixton Energy and Mining Corp. (BEMC), a wholly-owned subsidiary of Philex Petroleum, to suspend its underground mining operations for 6 months. The plunge in regional coal prices and "high operating costs" led to BEMC's reported losses.
The P132-million net loss BEMC incurred in January-September in 2012 was "adversely affected" by the significant decline in coal prices.
BEMC said earlier that the 6-month assessment focused on activities dedicated towards "the maintenance and repair of the coal mine, and to processing and marketing of existing coal inventory."
The underground mining operations was under Coal Operating Contract No. 130 (COC 130). - Rappler.com