Semirara Mining and Power Corp. (SMPC) is projecting confidence as it braces for a high-stakes government auction that will determine who operates the country’s largest coal mine beyond 2027.
The Department of Energy (DOE) is preparing to bid out the coal operating contract ahead of its expiration, dampening hopes for a straightforward 13-year extension sought by the Consunji-led firm.
The uncertainty has rattled investors. On Monday, SMPC shares plunged 21 percent to P26.10 apiece, wiping roughly P27 billion off its market value in a single session.
Semirara Mining said it has yet to receive any formal notice from the DOE regarding a final decision on its request for a term adjustment. It underscored what it sees as its competitive edge: decades of experience managing complex engineering projects, an established operational footprint, and a deep equipment fleet built over years of operating on Semirara Island.
Energy Secretary Sharon Garin has indicated that should an auction proceed, Semirara Mining is free to participate, a signal that incumbency offers no guarantee.
That raises the stakes.
Semirara Island accounts for nearly all domestic coal production, making the contract strategically critical not only for Semirara Mining but for the country’s energy security. The company has also poured in billions to develop the coal mine on Semirara Island.
Semirara Mining recently reported a 37 percent drop in January-to-September net income to P9.89 billion, as softer coal and spot electricity prices offset higher output and shipments.
While Semirara Mining’s scale and institutional knowledge could prove decisive in a competitive bid, the market’s sharp reaction suggests investors are recalibrating for a future where operating rights are no longer assured, and where policy direction may matter as much as production prowess.
