The Department of Energy (DoE) is weighing whether to increase the coal operating contract of Semirara Mining and Power Corp. (SMPC) or offer it to other mining firms because 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 firms.
“We’re still under discussion along with our legal team on what to do because we’ve to evaluate if the claim of Semirara is correct. But we are going to resolve inside 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 prolonged the term by 15 years, moving its expiration from 2012 to 2027.
Ms. Garin said the corporate 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 suppose since it’s the most important mining company or coal mining company within the country, it has the potential to mine for a number of years more. So there may be some interest also,” she added.
SMPC, the facility generation and coal-mining unit of the Consunji group, is the Philippines’ largest coal producer and the one power company within the country that owns and mines its own fuel source.
Last 12 months, the corporate allocated a P6.9-billion capital expenditure budget to enhance operational efficiencies in its coal and power segments.
For the primary nine months of 2025, SMPC’s income fell 37% 12 months on 12 months to P9.9 billion, as a result of weaker coal and electricity prices. Revenues slipped 13% to P43.26 billion.
Despite this, the corporate’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 on the Narra mine. — Sheldeen Joy Talavera