Semirara confident it can meet requirements for contract extension

SEMIRARA MINING and Power Corp. (SMPC) said it is confident it can submit a mining plan that meets Department of Energy (DoE) requirements to extend its coal operating contract on Semirara Island.

“It’s not easy. The first time we went to the Semirara site, it failed — even the first attempt before we came in. Because once it reaches around 160 meters below sea level, water starts to enter and everything begins to slide. If you don’t know how to prevent the water from coming in, you cannot mine,” SMPC Chairman Isidro A. Consunji said at a briefing in March.

He added that Semirara is unique, noting that few coal mines worldwide operate below sea level.

“Assuming the policy of the DoE is to minimize disruption and optimize production, who’s qualified? Who’s got the track record to mine below sea level? Nobody in the country. Semirara’s the only mine below sea level,” he said.

SMPC, which has held the coal operating contract for nearly 50 years, said new operators would face technical and logistical challenges. These include hundreds of dump trucks, dozens of high-power water pumps, and specialized equipment such as diaphragm walls that extend more than 100 meters deep — far beyond standard systems.

“There are many challenges for any new operator, even experienced ones. If the goal is to improve the mine plan, it is difficult to outperform an existing operator — whether it’s Semirara, Atlas Mining, or others — because the one already operating has the advantage,” Mr. Consunji said.

The mine’s contract expires in July 2027, but the DoE is offering the area for bidding this year, along with other confirmed mineable reserves.

The auction covers 18 coal blocks across about 18,000 hectares, including 10 blocks on Semirara Island in Caluya, Antique.

Bidders must submit documents by April 28, the same day as the bid opening.

SMPC said uninterrupted coal production is critical, as Semirara supplies about 38% of the country’s baseload power. Any disruption could raise electricity costs, increase inflation, and require coal imports, potentially affecting energy security and foreign exchange reserves.

The company said its mining plan is designed to maintain continuous operations, prevent seawater intrusion, and mitigate potential economic, social, and political impacts from production disruptions.

Meralco PowerGen Corp. has expressed interest in partnering with SMPC if it participates in the auction, while San Miguel Corp. has reportedly explored government-offered coal sites, including the Semirara area. — Alexandria Grace C. Magno