Semirara lets go of 996 more workers

Semirara Mining and Power Corp. (SMPC) is letting go of nearly 1,000 employees amid the massive seawater inflows at one of its mine sites, with limits on investments due to uncertainties in the bidding of coal contracts adding to the pressure on future production.

On Friday, the Consunji-led group reported that the flow rate at its Acacia coal mine had already climbed to about 30,000 cubic meters per hour, significant inflows that could fill 12 Olympic-sized swimming pools every hour.

The worsening situation has forced SMPC to cut down on operations, particularly stripping activities in the area.

With reduced operations, SMPC would implement another round of layoffs, this time involving 996 employees.

“Managing these seawater inflows over the longer term requires substantial investment in pumping equipment, power systems and other infrastructure. Uncertainty surrounding the coal bid round complicates planning for these investments,” it said.

“Without adequate capital spending, the risk of flooding and losing access to Acacia’s remaining coal reserves increases,” SMPC added.

Last August, the company initially removed a total of 462 employees from its operations following the decision to slash its coal production target for the year due to the planned coal mine bidding, which has been facing delays.

SMPC, accounting for more than 90 percent of domestic coal production, has a coal contract with the government that is set to lapse in July 2027.

The group said it was working closely with the Department of Energy (DOE) on the operating challenges and longer-term options amid the issues at the Acacia mine site.

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While this year’s target remains intact at 12 million metric tons, the current woes at the Acacia mine site will affect 2027 coal production as the latter “was expected to supply most of next year’s coal output.”

DOE Secretary Sharon Garin said the auction process may resume in a few weeks.

Earlier this week, SMPC warned the government that prioritizing the highest bid could backfire if the winning company has no technical expertise to operate Semirara Island.

“Given the scale and complexity of the Semirara mine, including operating below sea level as deep as a tall building, the process should safeguard operational continuity and take into account the welfare of the host communities whose jobs, livelihoods and local economy depend on the mine,” SMPC said.