SEMIRARA Mining and Power Corp., today, remains the only power producer in the country that both mines and uses its own fuel and continues to supply the bulk of domestically produced coal.
Photograph courtesy of Semirara Mining and Power Corporation
Share
Semirara Mining and Power Corp. (SMPC) is letting go of 462 mine-site employees as a sharp reduction in coal production and uncertainty over the future of its mining operations force the company to scale back its workforce.
The Consunji-led miner said Monday it filed a notice of redundancy with the Department of Labor and Employment after slashing its coal production target this year by more than one-third from last year.
The job cuts will affect more than one in every 10 SMPC employees.
As of end-July, the company had a workforce of 4,045, including more than 2,000 employees from its host communities.
“We recognize the impact of this decision on our affected employees and their families, and we will do our best to support them through this transition,” SMPC President and Chief Operating Officer Maria Cristina C. Gotianun said.
Affected employees will receive separation benefits under labor law and company policy.
SMPC said it will also offer affected workers opportunities for redeployment within the DMCI Group, as well as financial literacy training, skills retraining, livelihood and relocation support, and job placement services in the mining and energy sectors.
The workforce reduction comes as SMPC faces a crucial period for its core coal business, with its existing coal operating contract set to expire on July 14, 2027.
Uncertainty has persisted over the government's auction of the coal mine, prompting SMPC to lower its production target as part of its operational planning.
The Department of Energy now expects the auction to be held between August and September.
