Semirara Mining and Power Corp. (SMPC), the Consunji group's coal producer operating on Semirara Island in Caluya, Antique, has announced two redundancy programs this year covering a total of 1,458 employees amid production cuts, uncertainty over its mining contract and operational difficulties at one of its major coal pits.
In an August 10 disclosure to the Philippine Stock Exchange (PSE), the company reported filing a notice of redundancy with the Department of Labor and Employment (DOLE) covering 462 mine-site employees. A second disclosure on October 2 announced an additional 996 positions under a supplemental redundancy program.
Production cuts and contract uncertainty
SMPC reduced its 2026 coal production target to 12 million metric tons, down from its earlier indicative range of 16 million to 20 million tons. The company cited uncertainty surrounding the government's coal bid round and the July 14, 2027 expiration of its Coal Operating Contract No. 5.
The DOE terminated its 2026 Coal Bid Round in September to reassess the bidding parameters for future coal operating contracts, adding uncertainty to the transition of the mining operation.
Seawater inflows disrupt mine operations
The second redundancy program followed worsening seawater inflows at the company's Acacia mine. SMPC reported that water entering the mine had reached approximately 30,000 cubic meters per hour, exceeding its existing pumping capacity and increasing the risk of flooding.
The situation forced the partial suspension of stripping activities, which involve removing soil and rock to access coal reserves for future production.
SMPC said managing the inflows would require substantial investments in pumping equipment, power systems and other infrastructure. Disruptions at Acacia are also expected to affect 2027 coal production.
Assistance for affected employees
As of end-July, SMPC had 4,045 employees, including more than 2,000 from host communities.
The company said affected workers would receive separation benefits under labor laws and company policies. Its Employee Assistance Program also provides opportunities for redeployment within the DMCI Group, skills training, financial literacy programs, livelihood assistance, relocation support and job placement services.
SMPC said it remains committed to supporting affected employees and their families, although its latest disclosure did not specify the total separation costs or the number of workers who have already completed their transition.
