Ruling on Semirara contract likely out by early next year

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December 15, 2025 | 12:00am

MANILA, Philippines — The decision on extending Semirara Mining and Power Corp.’s (SMPC) coal operating contract beyond 2027 could be issued early next year, the Department of Energy (DOE) said.

“I’m hoping (for the decision) within this year, but probably that will be in the first quarter of next year,” Energy Secretary Sharon Garin told The STAR.

Garin said the DOE is awaiting the Department of Justice’s opinion before deciding whether to amend SMPC’s contract or open it for bidding.

“We know the value of Semirara. It’s a very significant portion of energy security, but we need to abide by the law and the provisions of the contract also,” the energy chief noted.

The contract, originally set for 35 years, grants SMPC the exclusive right to explore, develop and conduct coal mining operations on Semirara Island in Antique.

The DOE later extended it by 15 years, moving its expiration from 2012 to July 2027.

“Discussions with the DOE on the term adjustment of our coal operating contract are ongoing, with no material updates at this time,” SMPC said in a statement to The STAR over the weekend.

SMPC, chaired by tycoon Isidro Consunji, said any developments will be disclosed to the stock exchange when appropriate.

Under its existing coal contract, the company enjoys several incentives, including exemption from all taxes except income tax.

The contract also waives tariff duties and compensating tax on importation of machinery, equipment and materials required for coal operations, subject to certain conditions.

In return, SMPC is required to remit 30 percent of its net proceeds as royalties to the DOE and compensate landowners for using their private lands.

Royalty dues for the DOE’s share under the contract amounted to P6.38 billion and P10.68 billion in 2024 and 2023, respectively, latest company data showed.