Semirara Mining and Power Corp. (SMPC) is staking its claim ahead of the Department of Energy’s (DOE) competitive bidding for the Semirara coal assets as it prepares what it calls its “best mine plan” to lock in the contract and sustain the country's energy needs.
Speaking at the company’s Annual Stockholders’ Meeting on Monday, SMPC President, COO, and Chief Sustainability Officer Maria Cristina C. Gotianun cited the group’s track record as a key advantage in the upcoming bid.
“If you look at SMPC, we’ve been doing this for close to three decades—large-scale, complex mining, growing production and delivering on our commitments,” she said. “With this expertise, we’re putting forward a mine plan that keeps production steady, supports energy security, and continues delivering for the government.”
The DOE has launched a competitive selection process for the Semirara coal assets, where bidders will be assessed on technical capability, financial strength, and proposed work programs. Gotianun said SMPC’s submission is anchored on long-term operational continuity and national interest.
“In preparation, we are developing the best mine plan that would support the country’s energy security, while ensuring the continuity of government revenues and community investments,” she said, noting the company’s experience in handling “increasingly complex mining conditions such as water seepage.”
While expressing confidence, the company also signaled readiness to adapt should it not secure the contract.
“At the same time, we remain prudent,” Gotianun said. “Given the more supportive direction for responsible mining, we have the flexibility to redeploy our capabilities, people, and capital across other opportunities in the sector where we can contribute to create value.”
Apart from the bidding process, SMPC also pointed to external risks that could weigh on operations, particularly rising fuel costs driven by geopolitical tensions.
Chairman Isidro A. Consunji warned that the Middle East conflict is already rippling through global oil markets.
“The disruption in the global oil supply arising from the Middle East conflict is putting upward pressure across the economy, including our operations, which rely on fuel, while developments remain fluid,” he said.
To blunt the impact, SMPC is securing supply, tightening efficiency, and exploring alternatives.
“We have a fuel supply coming and [are] continuously exploring alternative fuel sources with lower premiums,” Consunji said, adding that SMPC is rolling out fuel efficiency measures, including “off-take from the MCI Power’s wind energy to reduce diesel consumption in our operations.”
Despite these pressures and lingering regulatory uncertainty, SMPC’s core strategy remains intact—even as its latest financials show strain.
In the first quarter of the year, SMPX saw its net income fall 12 percent to P3.8 billion, as weaker power generation and lower coal shipments pulled revenues down 7 percent to P15.43 billion.
Coal production rose 4 percent, but shipments declined 4 percent due to softer exports, while power sales dropped 22 percent on weaker plant performance. Despite this, electricity prices edged higher on more contracted sales. The company also plans to cut 2026 capital spending to P1.9 billion from P5.9 billion, with no major upgrades lined up.