Manila: The Semirara Mining and Power Corp. (SMPC) is formulating a comprehensive mining plan to gain approval from the Department of Energy (DOE) for a 13-year contract renewal. SMPC currently operates under a coal operating contract (COC) to explore, develop, and mine coal at the 55-square-kilometer Semirara Island in Antique, which is set to expire on July 14, 2027.

According to Philippines News Agency, the company announced its capability to maintain continuous and uninterrupted mining operations on Semirara Island, which supplies approximately 38 percent of the nation's baseload power. The company emphasized the importance of effectively managing the Acacia mine, situated 350 meters below sea level, as a critical component of their mining strategy.

Currently, SMPC is tasked with removing about 30,000 cubic meters of seawater per hour-equivalent to 12 Olympic-size swimming pools-to access coal deposits. This seepage management is crucial for sustaining coal production. The operations also require specialized equipment, hundreds of mining trucks, and other heavy machinery, all of which SMPC claims to have well in place.

SMPC expressed confidence in its ability to submit the optimal mining plan to the DOE within the required timeframe. The company highlighted the potential economic, political, and social consequences of any disruption in coal production, particularly given the ongoing geopolitical tensions in the Middle East. Such interruptions could lead to increased electricity costs, heightened inflation, and significant public hardship.

A halt in coal production would also result in zero payments to the government, a concerning prospect at a time when financial resources are needed to mitigate the impact of high fuel prices on the public. Additionally, reliance on coal importation could weaken the country's energy security, deplete foreign exchange reserves, and exacerbate inflationary pressures, negatively impacting the peso and economic growth.