Semirara Mining and Power Corp (SCC) is the largest coal miner in the Philippines. It is controlled by the Consunji family through its publicly listed holding company DM Consunji Holdings, Inc. (DMC) which owns 56.63% of the coal miner. China ban on Australian coal only to benefit the Philippines as China foreign ministers reaffirmed the “continuing vitality” of the countries’ relations.
Its operation has been severely affected by the pandemic induced shutdowns of day to day activities. The impact was felt on its finances sending Semirara Mining and Power Corp share price spiraling downward.
Bloomberg reported that China is banning Australian coal. According to the report, Chinese power stations and steel mills have been verbally told to immediately stop using Australian coal. Chinese Ports have also been told not to offload Australian coal.
The ban was reported to be an escalation on the diplomatic spat between China and Australia. China has objected to a series of diplomatic moves by Australia that it viewed as supporting the U.S. in its trade and security dispute with China. Among other things, Australian Prime Minister Scott Morrison in April called for independent investigators to be allowed into the Chinese city of Wuhan to probe the origins of the coronavirus.
While the diplomatic tension between China and Australia is rising, China and the Philippines affirm their ties. The Philippines and China foreign ministers reaffirmed the “continuing vitality” of their countries’ relations amid recent tensions in the South China Sea. China Foreign Minister Wang Yi hosted Philippines counterpart Teodoro Locsin at a meeting in Tengchong City, in the southern province of Yunnan, on Saturday to discuss political and economic cooperation.
If China is banning Australian coal, then it should be looking right now for replacements, where Semirara Mining and Power Corp could greatly benefit.
Semirara Mining and Power Corp is listed in the exchange as $SCC with last traded price at $10.78 last Oct. 13, 2020.
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