Philippines Largest Coal Producer To Export 50,000 Tons Of Coal To Japan

Semirara Mining and Power Corp., the Philippines' largest coal producer, announced on Thursday that it will ship 50,000 tonnes of coal to Japan's Shikoku Electric Power Co Inc. as it diversifies its export markets and reduces reliance on China.

Semirara's second trial shipment to Japan for Shikoku's 700-megawatt power station comes after the company sold 78,410 tonnes of mid-grade coal to J-Power in January, according to a statement.

"China is still our main foreign buyer, but with their industrial output growing at a slower pace than expected, we want to develop other Asian markets like Japan," Semirara president Maria Cristina Gotianun said.

Semirara's coal shipments to China fell 50% to 1.1 million tonnes in the first quarter compared to the same period last year, despite accounting for 72% of the company's total exports for the period.

Last year, the company expanded its export markets to include buyers from Vietnam, Cambodia, Thailand, and South Korea, accounting for 99 percent of the Philippines' coal output.

It describes South Korea as a "steady market" with first-quarter shipments of 300,000 tonnes, or one-fifth of total export sales.

Semirara expects full-year sales of 15 million to 16 million tonnes, up from 14.8 million tonnes in 2022. The majority of its coal output is used to fuel domestic power plants, including those owned by the company.

In line with its decarbonisation goal, the Philippines has recently pushed for a shift away from coal and oil in power generation. It has prohibited the development of new coal-fired power plants while encouraging investments in natural gas and renewables.

Semirara, on the other hand, remains bullish on domestic coal usage prospects, citing the country's long-term economic growth trajectory and the limited baseload power capacity entering the local market in the coming years.