Semirara Mining and Power Corporation (SMPC) said it is preparing a mine plan and taking measures to manage its capital as there is uncertainty over the future of its coal operating contracts (CoCs).
In a disclosure on Wednesday, SMPC said mining, shipment and power generation activities remain operational and unaffected despite the news that its request for contract renewal has been rejected.
For the first nine months of 2025, SMPC reported a 37% decline in core net income to P9.89 billion, with coal segment profits accounting for 45%.
“If DoE (Department of Energy) proceeds with the formal bidding process subject to issuance of relevant notices and guidelines, the company intends to complete the remaining portion of its existing COC while preparing appropriate mine plan and documents,” SMPC said.
“Management continues to implement prudent capital management measures to maintain financial flexibility.”
“As of date, there has been no immediate impact on the company's financial position or business operations other than the mine plan being submitted to the Department of Energy,” the company said.
Located in the province of Antique, Semirara Island covers an area of 55 square kilometers and can produce 16 million metric tons of coal per year.
SMPC has had the CoC for the area for almost 50 years, which allowed it to explore, develop and mine coal. After the extension, the contract is scheduled to expire on July 14, 2027.
The company had sought approval from DOE to renew its contract for 13 more years. However, Energy Secretary Sharon S. Garin said the contract could not be renewed after a Justice Department legal opinion said it should be put out to bid.
The company said, however, that it has not yet received any formal response from the DOE regarding its decision.
In a report, online brokerage 2TradeAsia.com said the company's operational risk is limited in the near term as its mine plan already assumes no expansion beyond 2027, no change in production or capital expenditure guidance is expected, and existing inventory buffers the power segment.
“Overall, while the bid creates regulatory overhang, [SMPC] It is, it said, operationally prepared and competitively deployed while supporting a probability-weighted outcome favorable to structural constraints and power. – Sheldin Joy Talavera