SEMIRARA MINING and Power Corp. (SMPC) said it’s preparing a mine plan and taking measures to administer its capital as uncertainty surrounds the longer term of its coal operating contract (COC).
In a disclosure on Wednesday, SMPC said mining, shipments, and power generation activities remain ongoing and unaffected despite the news that its request for contract renewal has been denied.
For the primary nine months of 2025, SMPC reported a 37% decline in core net income to P9.89 billion, with the coal segment accounting for 45% of profits.
“The corporate intends to meet the rest of its current COC while preparing the suitable mine plan and documentation should the DoE (Department of Energy) proceed with a proper bidding process, subject to the issuance of the relevant notices and guidelines,” SMPC said.
“Management continues to implement prudent capital management measures to preserve financial flexibility.”
“As of this date, there isn’t a immediate impact on the corporate’s financial condition or business operations, beyond the mine plan submitted to the Department of Energy,” the corporate added.
Situated within the province of Antique, Semirara Island covers an area of 55 square kilometers and may produce 16 million metric tons of coal a yr.
SMPC holds the COC for the world for nearly 50 years, which allowed it to explore, develop, and mine coal. After an extension, the contract is about to run out on July 14, 2027.
The corporate had sought approval from the DoE to renew its contract for 13 more years. Nonetheless, Energy Secretary Sharon S. Garin said that the contract can’t be renewed following the legal opinion from the Department of Justice, which said it ought to be bid out.
The corporate said, nevertheless, it has yet to receive any formal response from the DoE regarding its decision.
In a report, online brokerage 2TradeAsia.com said that the corporate’s operational risk is proscribed within the near time as its mine plan already assumes no extension beyond 2027, expects no changes to production or capital expenditure guidance, and existing inventories buffer the ability segment.
“Overall, while the bidding creates regulatory overhang, [SMPC] stays operationally prepared and competitively positioned, with structural barriers and incumbency supporting a good probability-weighted consequence,” it said. — Sheldeen Joy Talavera