Shares of Semirara Mining and Power Corp. rebounded strongly Thursday after two days of decline, fueled by management’s confidence in securing a new coal operating contract.
During a briefing, the company outlined its case for winning the contract, citing its technical expertise and the substantial capital requirements that may deter competitors.
According to a report by COL Financial, Semirara management emphasized that its nearly 30 years of experience on Semirara Island provides a competitive edge. The company noted that the area’s coal deposits are located below sea level, requiring specialized mining techniques it has refined over decades.
Management estimated that operating a 15-million-metric-ton-per-year coal mine requires several billion pesos in investment. With the mine’s remaining life estimated at about 10 years, the company believes the high upfront costs may not justify the entry of new players.
Despite the optimism, the company has prepared contingency measures should it fail to secure the contract, including acting as a service contractor to the winning bidder and developing other coal assets in the Philippines using its exploration experience.
For its power segment, management expects existing inventory and production to supply the Calaca coal plants until 2027. Beyond that, the company may transition to imported coal from Indonesia to meet fuel requirements.
