DoE reviews Semirara coal contract ahead of 2027 expiry

The Department of Energy (DoE) is weighing whether to extend the coal operating contract of Semirara Mining and Power Corp. (SMPC) or offer it to other mining firms as it approaches expiration in 2027.

Energy Secretary Sharon S. Garin said the 50-year contract gives the department two options: extend it or bid it out to other companies.

“We’re still under discussion together with our legal team on what to do because we have to assess if the claim of Semirara is correct. But we will decide within the quarter,” she told reporters on Tuesday.

The coal operating contract, which was originally set for 35 years, was issued in 1977, granting SMPC the exclusive right to explore, develop, and mine coal on Semirara Island. The DoE extended the term by 15 years, moving its expiration from 2012 to 2027.

Ms. Garin said the company is “asking for 13 years more” for the effective period of its contract.

Asked whether other firms had expressed interest, she said the DoE had received no official or unofficial notice.

“But I guess because it’s the biggest mining company or coal mining company in the country, it has the potential to mine for a few years more. So there might be some interest also,” she added.

SMPC, the power generation and coal-mining unit of the Consunji group, is the Philippines’ largest coal producer and the only power company in the country that owns and mines its own fuel source.

Last year, the company allocated a P6.9-billion capital expenditure budget to improve operational efficiencies in its coal and power segments.

For the first nine months of 2025, SMPC’s income fell 37% year on year to P9.9 billion, due to weaker coal and electricity prices. Revenues slipped 13% to P43.26 billion.

Despite this, the company’s total coal shipments reached a record 12.9 million metric tons (MT), driven by stronger exports and increased deliveries to its own power plants.

Coal production also hit an all-time high of 15.1 million MT, aided by improved access to coal seams at the Narra mine. — Sheldeen Joy Talavera