The Department of Energy (DOE) will decide within the first quarter whether to grant Semirara Mining and Power Corp. (SMPC) a 13-year extension of its coal operating contract in Semirara Island, Antique.
SMPC’s current contract runs until July 14, 2027. The company is seeking to extend its 50-year franchise by 13 years, arguing that this period should be added because it previously operated under a government-owned and controlled corporation (GOCC).
Energy Secretary Sharon Garin said the DOE, with its legal team, is still reviewing whether SMPC’s claim is valid. The government is also weighing the option of opening the coal mining operations to bidding.
Garin said there is no formal notice yet on future plans for the Semirara coal resource, but noted that while the mine may still have years of potential production, coal mining in the area requires complex technology, which limits interested parties.
SMPC recently secured an amended Environmental Compliance Certificate from the Department of Environment and Natural Resources for the expansion of its coal mine complex. The amendment increases the project area and raises the annual production cap from 16 million to 20 million metric tons from 2025 to 2027 by adding the Acacia mine to the existing Narra mine.
Should the regulator agree to extend its franchise, SMPC will continue to operate the mines until July 2040.
Semirara is the country’s largest coal producer, supplying nearly 94 percent of locally produced coal. Coal remains the Philippines’ dominant power source, accounting for about 42 percent of installed power capacity, even as the country continues to rely heavily on imported coal to meet demand.
