The Consunji Group’s DMCI Holdings Inc has shelved its plan to develop a cement manufacturing plant on Semirara Island, citing logistical and strategic considerations following the group’s acquisition of Cemex Holdings Philippines Inc (CHP). The company recently announced that CHP will be rebranded as Concreat Holdings Philippines Inc.
Herbert M. Consunji, DMCI CFO and CHP’s new president and CEO, explained that the focus will now be on optimising operations at Solid Cement’s new expansion plant in Antipolo and Apo Cement’s facility in Cebu. These plants serve the primary cement markets of Metro Manila, Luzon and the Visayas, avoiding the logistical challenges and higher costs associated with transporting cement from Semirara Island.
The proposed Semirara plant would have utilised by-products from the coal mining operations of Semirara Mining and Power Corp (SMPC) to achieve synergy and cost efficiency. However, the company’s Coal Operating Contract (COC) with the Department of Energy is set to expire on 14 July 2027. Plans to proceed with the project are contingent on the renewal of the COC.
Despite the delay, Semirara Island holds potential for future cement production due to its substantial reserves of silica, limestone and clay. SMPC’s pending application for a Mineral Production Sharing Agreement (MPSA) may provide additional opportunities. Notably, the Department of Environment and Natural Resources approved MPSA No 352-2022-VI for SMPC’s Himalian Limestone Project in March 2022, granting a 25-year contract to mine over 3800ha on Semirara Island.
SMPC is also considering opening the Himalian Mine, which holds an estimated 120Mt of in-situ coal, to meet growing local coal demand. If cement demand justifies the investment, the company envisions an integrated cement plant adjacent to the mine, leveraging the limestone and silica-rich overburden.
With DMCI’s focus on existing assets and CHP’s operations, the development of a Semirara cement plant remains a longer-term strategic consideration.
