SEMIRARA MINING and Power Corp. (SMPC) said it is preparing a mine plan and taking measures to manage its capital as uncertainty surrounds the future 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 first 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 company intends to fulfill the remainder of its current COC while preparing the appropriate mine plan and documentation should the DoE (Department of Energy) proceed with a formal 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 is no immediate impact on the company’s financial condition or business operations, beyond the mine plan submitted to the Department of Energy,” the company added.
Situated in the province of Antique, Semirara Island covers an area of 55 square kilometers and can produce 16 million metric tons of coal a year.
SMPC holds the COC for the area for almost 50 years, which allowed it to explore, develop, and mine coal. After an extension, the contract is set to expire on July 14, 2027.
The company had sought approval from the DoE to renew its contract for 13 more years. However, Energy Secretary Sharon S. Garin said that the contract cannot be renewed following the legal opinion from the Department of Justice, which said it should be bid out.
The company said, however, it has yet to receive any formal response from the DoE regarding its decision.
In a report, online brokerage 2TradeAsia.com said that the company’s operational risk is limited in 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 power segment.
“Overall, while the bidding creates regulatory overhang, [SMPC] remains operationally prepared and competitively positioned, with structural barriers and incumbency supporting a favorable probability-weighted outcome,” it said. — Sheldeen Joy Talavera
