Integrated energy company Semirara Mining and Power Corporation has earmarked P5.6 billion for its capital expenditure program next year, which is 8 percent higher than this year's P5.2 billion allocation.

The company said majority or P4.1 billion of the budget will bankroll mining equipment refleeting of its coal segment.

The remaining P1.5 billion will be used for the planned maintenance activities of its power subsidiaries — SEM-Calaca Power Corporation and Southwest Luzon Power Generation Corporation.

SMPC has spent P3.6 billion of its 2022 capex as of the end of September. Around P2.2 billion went to the acquisition of mining and support equipment. The rest or P1.4 billion was used to repair and replace plant components of SCPC and SLPGC.

Demand stable

"We expect stable demand for coal and electricity next year so we're continually investing in our production and generation capacities," SMPC president and COO Maria Cristina C. Gotianun said.

SMPC has set a coal production target of 14.5 million metric tons for 2023, roughly the same as its 14.5 MMT to 15 MMT target this year.

In the first nine months of 2022, SMPC coal production reached 13.7 MMT.