According to a disclosure filed to the Philippine Stock Exchange, Philex Petroleum stated that Brixton would go ahead with mine closure in Diplahan, Zamboanga Sibugay under coal operating contract no. 130 (COC 130), as earlier reported to the Department of Energy, reported BusinessWorld.
"The underground mining operations in COC 130 has been suspended since January 1, 2013 due to negative margins resulting from high operating costs and substantial drop in regional coal prices in 2012," the disclosure read.
Philex Petroleum president Carlos Pablo was qouted by the website as saying that the projected marginal returns during the remaining contract period drove the company to this decision.
"Closure will reduce the company’s operating costs," Pablo added.
Earlier in January this year, Philex Petroleum had claimed that Brixton had been adversely affected by the considerable fall in coal prices, following which the company decided to suspend and review operations and prospects of its coal mine.
