Semirara seeks 13-year extension for coal contract
Semirara Mining and Power Corp.(SMPC) hopes to extend by 13 years its coal operating contract, which is set to lapse by July 2027. But the government may also welcome new operators.
This is according to Department of Energy (DOE) Secretary Sharon Garin. She floated the possibility of opening Antique province’s coal mine on Semirara Island to other investors.
“Why bidding? Because their 50 years are finished already. But they’re asking for an extension. They’re asking for 13 years more,” she told reporters at a recent briefing.
“So we’re still under discussion together with our legal team on what to do because we have to assess if the claim of Semirara is correct,” the energy chief added.
The company led by Isidro Consunji is the country’s largest coal producer.
SMPC’s contract gives the group the exclusive right to explore, develop and conduct coal mining operations on the eponymous island. Through this, the company receives tax perks, except those related to income tax.
The agreement mandates SMPC to remit to the DOE 30 percent of its net proceeds as royalties. It is also required to compensate landowners.
Garin hopes to finalize the decision “within the quarter.”
The DOE chief earlier said they were waiting for the Department of Justice’s opinion before deciding on the matter.
Although no groups have begun showing interest in taking over the mining operations, the energy chief said that some might look into it given the site’s “potential to mine for a few years more.”
“But I have to say, though, it’s a very complicated technology,” she said.
