The Department of Energy expects to decide within the first quarter on an application by Semirara Mining and Power Corp. (SMPC) to extend its coal operating contract for another 13 years or until 2040.
Energy Secretary Sharon Garin said the agency is weighing whether to grant the extension or open the area to a competitive bidding process.
The company’s original 50-year term has concluded and the legal team is assessing if the claim for additional years is valid.
The department said it is awaiting a final opinion from the Department of Justice on the legality of a contract extension. While no official notice has been received from other interested parties for the contract area, Garin noted that the site’s significant reserves and the complex technology required for its operation could draw interest.
SMPC is the largest coal producer in the Philippines and operates as a vertically integrated power generation firm.
The company was first granted its coal operating contract in 1977 and holds estimated reserves of 170 million metric tons on Semirara Island. In 2019, the contract area was expanded to include thousands of hectares on Caluya and Sibay islands.
Despite record production levels, the company reported a 37-percent drop in net income to P9.9 billion in the first nine months of 2025.
The decline from P15.7 billion in the previous year was attributed to weaker market prices for coal and electricity alongside higher production costs.
Total shipments in the nine-month period rose 5 percent to a record 12.9 million metric tons, supported by exports and internal power plant requirements.
The average selling price for Semirara coal fell 19 percent to P2,325 per metric ton, tracking global market indices and a higher volume of lower-grade shipments.
Coal production reached a record 15.1 million metric tons during the period, up 15 percent from 13.1 million metric tons in the prior year, following improved access to coal seams at the Narra mine.
