Government coal bid puts Semirara jobs, output at risk

Insider Spotlight

• Seawater inflows exceeding pumping capacity have forced SMPC to scale back operations, prompting a redundancy program covering 996 employees

• Uncertainty over the government’s coal bid round is making it harder to commit the major investment needed for pumps, power systems and other infrastructure

• Without that spending, SMPC risks losing access to reserves expected to supply most of its coal production in 2027

The consequences of uncertainty over the government’s coal bid round are beginning to show at the Philippines’ largest coal operation, complicating investment decisions as seawater threatens jobs and future production on Semirara Island.

The Consunji family's Semirara Mining and Power Corp. (SMPC) needs substantial spending on pumps, power systems and other infrastructure, but the unresolved bid process has clouded planning for a long-term solution.

​Isidro Consunji 

Semirara Mining and Power chair, CEO 

What the company is saying 

“Managing these seawater inflows over the longer term requires substantial investment in pumping equipment, power systems and other infrastructure. Uncertainty surrounding the coal bid round complicates planning for these investments,” SMPC said in a stock exchange filing on Friday. 

The problems center on the Acacia mine, part of SMPC’s coal complex on Semirara Island in Antique.

“Without adequate capital spending, the risk of flooding and losing access to Acacia’s remaining coal reserves increases. These conditions have limited operations and led to the partial suspension of stripping activities at the Acacia mine, which are needed to access coal for future production,” it added. 

Pumps fall behind

Seawater is entering the affected mining area at about 30,000 cubic meters an hour—enough to fill 12 Olympic-sized swimming pools.

The flow already exceeds existing pumping capacity, raising the risk of flooding and losing access to the remaining coal reserves.

SMPC has limited operations and partially suspended stripping work needed to expose coal for future production.

Consequences reach 2027

The company is aligning its workforce with reduced operating requirements through a redundancy program covering 996 employees.

SMPC is maintaining its 2026 production target at 12 million metric tons despite the disruption.

The bigger impact will emerge in 2027 because the affected site had been expected to supply most of next year’s coal output.

The Department of Energy inspected the site from Sept. 24 to 26 as SMPC continued discussions over its operating challenges and longer-term options.

 —Edited by Miguel R. Camus