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Manila Bulletin devider Business devider Trade & Industry devider Semirara cuts coal output, workforce as 50-year contract nears expiry

Semirara cuts coal output, workforce as 50-year contract nears expiry

Published Aug 10, 2026 04:08 pm
One of the coal pits of Semirara Mining and Power Corp. (SMPC), the country’s largest coal producer, is in Caluya town, Antique province. (Tara Yap I Manila Bulletin)
One of the coal pits of Semirara Mining and Power Corp. (SMPC), the country’s largest coal producer, is in Caluya town, Antique province. (Tara Yap I Manila Bulletin)

Consunji-led Semirara Mining and Power Corp. (SMPC) is cutting its coal production target by more than one-third and laying off hundreds of workers as uncertainty persists over who will operate Semirara coal mine after its 50-year contract expires next year.

In a statement on Monday, Aug. 10, SMPC said its reduced annual coal output target is down from its previous indicative target of 16 million to 20 million metric tons (MMT) annually for 2026 and 2027, based on the mine plan submitted in early 2025 and subject to prevailing mine and operating conditions.

Actual coal production in 2025 reached 19.9 MMT, just below the limit of up to 20 MMT per year.

SMPC’s 50-year contract, which began in 1977, will expire on July 14, 2027. The Department of Energy (DOE) earlier rejected the company’s request for an extension and opted to select the next operator through competitive bidding.

“SMPC reduced its 2026 production target as part of its operational planning in light of the continued uncertainty surrounding the coal mine auction, which the DOE [Department of Energy] now expects to hold between August and September,” the company said, noting that the coal operating contract is scheduled to end on July 14, 2027.

The DOE initially planned to conduct the auction earlier this year but subsequently pushed it back, with the bidding expected to proceed between this month and next month.

As a result of the production cut, SMPC has filed a notice of redundancy with the Department of Labor and Employment (DOLE) to downscale its workforce, affecting about 462 mine-site employees.

“We recognize the impact of this decision on our affected employees and their families, and we will do our best to support them through this transition,” said SMPC President and Chief Operating Officer (COO) Maria Cristina C. Gotianun.

Under its employee assistance program, SMPC will offer job opportunities or redeployment within DMCI Group. It will also provide financial literacy training, skills retraining, livelihood support, relocation support, and job placement services within the mining and energy industries.

The company noted that it had about 4,045 employees, with over 2,000 employees in the host communities as of July.

SMPC recently announced that its coal production during the first half of the year dropped to 2.5 MMT, about 55 percent lower than the 5.6 MMT recorded in the same period last year.

Shipments likewise decreased to four MMT from 4.6 MMT due to stripping activities in Narra block and lower production at Acacia mine.

The DOE is auctioning the Semirara coal area as part of a broader bid round covering 18,000 hectares (ha) of coal blocks, as the government seeks to maximize domestic coal production amid potential changes in exports from Indonesia, the Philippines’ major source of imported coal.

The DOE earlier said it also plans to require the winning bidder for Semirara coal mine to prioritize domestic supply before exporting excess production.

Semirara coal is expected to supply about 60 to 70 percent of local coal requirements, although the level remains subject to the DOE’s evaluation. - Gabriell Christel Galang

Related Tags

Semirara Mining and Power Corp. (SMPC) Antique DOE
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