The Department of Energy (DOE) is considering whether to extend the coal operations contract of Semirara Mining and Power Corporation (SMPC) or offer it to other mining companies as it is set to expire in 2027.
Energy Secretary Sharon S. Garin said the 50-year contract gives the department two options: extend it or put out bids for other companies.
“We are still discussing with our legal team what to do because we have to assess whether Semirara's claim is true or not. But we will make a decision within the quarter,” he told reporters on Tuesday.
The coal operating contract, originally scheduled for 35 years, was issued in 1977, giving SMPC the exclusive right to explore, develop and mine coal on Semirara Island. DOE extended its duration by 15 years, moving its expiry from 2012 to 2027.
Ms. Garin said the company is “asking for 13 more years” to the effective term of its contract.
Asked if other companies had expressed interest, he said DoE had not received any official or unofficial notice.
“But I think because it's the largest mining company or coal mining company in the country, it has the potential to mine for a few more years. So there may be some interest in it as well,” he said.
SMPC, the power generation and coal-mining unit of 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 capital expenditure budget of P6.9 billion to improve operational efficiency in its coal and power sectors.
In the first nine months of 2025, SMPC's income fell 37% year on year to P9.9 billion due to weak coal and power prices. Revenue fell 13% to P43.26 billion.
Despite this, the company's total coal shipments reached a record 12.9 million metric tons (MT), driven by strong exports and increased deliveries to its own power plants.
Coal production also reached an all-time high of 15.1 million metric tons, aided by better access to coal seams at the Narra mine. — Sheldin Joy Talavera