SMPC cuts more jobs as coal bid uncertainty hits Acacia

October 3, 2026 | 12:00am

MANILA, Philippines — Semirara Mining and Power Corp. (SMPC) is laying off nearly 1,000 more employees as uncertainty over its coal contract limits investment and forces reduced operations at its Acacia mine in Antique.

In a statement yesterday, the Consunji Group’s integrated energy company said seawater inflows have constrained operations at the mine.

Despite efforts to control the seawater, SMPC said the flow rate has climbed to around 30,000 cubic meters per hour, equivalent to filling 12 Olympic-sized swimming pools every hour.

The volume, it said, has surpassed the mine’s current pumping capacity, raising the risk of flooding at Acacia and limiting access to its remaining coal reserves.

“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,” SMPC said.

These conditions have prompted the partial suspension of stripping activities at the mine, which are essential to accessing coal for future production.

“Management is therefore aligning manpower with reduced operating requirements through a supplemental redundancy program affecting 996 employees,” SMPC said.

The company affirmed its commitment to supporting the affected employees and their families throughout the transition.

The latest job cuts come on top of the 462 mine-site employees previously identified for redundancy, as SMPC continues to trim its workforce following a reduction in its annual coal production target.

The coal output target has been scaled back for the year to 12 million metric tons, well below the record production of 19.9 million MT in 2025.

The lower target reflects SMPC’s operational planning amid continued uncertainty over the government’s coal auction, which is set to be relaunched this month after the previous bidding was scrapped in September.

The auction also covers areas in Cagayan and Isabela, but its centerpiece is the Semirara mine, the largest of its kind in the country.

SMPC’s existing coal contract is set to expire in July 2027.

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