Semirara to infuse add’l equity in DMCI units

Semirara Corp., the coal unit of the Consunji family, has approved the infusion of a total P215 million in fresh equity in DMCI Mining Corp. and DMCI Power Corp.

In a disclosure to the Philippine Stock Exchange, Semirara said it is injecting P100 million into the capital increase of DMCI Mining, which is engaged in the mining of nickel, minerals and base metals.

Following the equity infusion, Semirara will own 50 percent of DMCI Mining while the other 50 percent will be owned by parent firm DMCI Holdings Inc.

DMCI Holdings Inc. is raising its capitalization to P500 million from only P80 million. It is currently the mining contractor of a mining claim in Sta. Cruz, Zambales under a mineral production sharing agreement in the name of CRAU Mineral Resources Corp.

Aside from this, Semirara will subscribe to P115 million in equity in DMCI Power Corp. which is increasing its authorized capital stock from P80 million to P1 billion.

DMCI Power has two major power generation projects: the 100-megawatt coal-fired power generation plant in Concepcion, Iloilo and the 15-megawatt coal-fired power plant in Masbate.

Semirara is venturing into nickel and gold mining and power to boost its cash flow amid declining coal prices.

The board of Semirara has likewise authorized the declaration of cash dividends amounting to P4 per share to shareholders of record as of March 3. The cash dividends are payable on March 27.

In the nine months ending September 2007, Semirara reported a one percent drop in net income to P565 million due to lower prices of coal.

Semirara is the country’s top coal producer, accounting for 92 percent of the country’s total output.