Semirara hopes to win coal mine bidding
Semirara Mining and Power Corp. is keeping its hopes high that its “competitive edge” would help it retain its coal mining right, even as investors started to dump its shares to price in the risk of losing the valuable concession.
“If Semirara loses this contract, it could cut the company’s net income by more than half,” Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., told Inquirer.
Semirara suffered a 21.39-percent drop to P26.10 per share on Monday. Parent conglomerate DMCI Holdings, meanwhile, also logged a 14.66 percent slash in share price to 9.20 each.
This was as Energy Secretary Sharon Garin announced that the government would auction off the Semirara coal mining concession, which would expire in 2027.
Semirara’s coal business—which gives it status as the largest coal producer in the Philippine market—contributed 45 percent of company profits as of September 2025.
Semirara said it had yet to receive the formal notice on its 13-year extension plea.
Armed with decades of technical muscle and extensive coal operations, however, Semirara expressed confidence in dominating the planned auction, given its “competitive advantage.”
The group cited its “decades of experience in managing complex engineering projects, coupled with its established operations, technical expertise and extensive equipment fleet…”
Should the government formally initiate a bidding process, Semirara intends to participate.
“We believe our decades of operating experience, technical expertise and established infrastructure in Semirara Island position us strongly,” it said.
Peter Garnace, equity research analyst at Unicapital Securities Inc., said losing the contract would “definitely dent [Semirara] earnings and fundamentally shrink its core business.”
Without a similar major coal operations lifting this segment, he said the Consunji-led firm should brace for “a massive drop” in its valuation.
Garnace added that Semirara’s expansion of operations at the Acacia mine could boost its annual coal production limit from 16 million metric tons (MMT) to 20 MMT. However, he noted that nonrenewal of the contract posed “a significant regulatory overhang.”
“We believe the company stands a strong chance of securing the contract, given its competitive advantages,” Garnace added.
For Colet, a “better solution” is to provide Semirara with “a reasonable extension,” saying the government should just explore better terms with the firm.
Garin said a bidding for the Semirara coal mining contract would be set within the year. She also noted that the incumbent operator could still participate and had the advantage, given the complexity in handling the coal operations.
