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Manuel Pangilinan-led Philex Petroleum Corp. on Monday said a subsidiary will close its coal mine under Coal Operating Contract No. 130 in Diplahan, Zamboanga Sibugay for being an unprofitable venture.
Wholly-owned unit Brixton Energy and Mining Corporation said it already told the Department of Energy of plans to close the mine, Philex Petroleum said in a disclosure to the Philippine Stock Exchange on Monday.
"The underground mining operations in COC 130 has been suspended since January 1,2013 due to negative margins resulting from the high operating costs and the substantial drop in regional coal prices in 2012," the disclosure read.
Citing a continued decline world coal prices, Brixton Energy stopped operating the mine starting in January. It said a suspension of underground mining operations was prudent amid a review on its economic viability.
Philex Petroleum widened its net loss to P225.2 million in the first half of the year from an P80.5 million net loss a year earlier. — SOA/VS, GMA News