Semirara Mining and Power Corp. (SMPC) disclosed plans to invest P291 billion for its coal mine expansion project in Semirara Island, Caluya, Antique.
SMPC said in documents submitted to the Department of Environment and Natural Resources the amount would expand the existing Molave and Narra pits and a new area.
It said the project includes the mined-out Panian pit and the Narra and Mojave coal mine operations as well as the upcoming Acacia deposit.
SMPC said it would pursue the project because mining operations support local employment, infrastructure development and economic activity.
It said that despite global trends toward clean energy, coal remains in demand, especially as existing coal plants continue to operate under current policies.
“SMPC’s operations in the Molave and Narra mines, along with the future expansion in Acacia, ensure continued coal production, which is crucial for electricity generation and cement manufacturing,” it said.
SMPC said the project expansion was based on the discovery of additional coal resource and reserve of 90 million metric tons and 72 million MT, respectively from the Acacia pit.
Acacia is located northwest and part of the upthrown block relative to Molave pit.
SMPC said Acacia passed technical and economic criteria, but preparatory and site development should be in place prior to mining to prevent controlling sea water intrusion by employing a sea barrier.
It said “open pit” mining currently employed would also be utilized in Acacia due to its similarity of geological formation of the Molave and Narra mine areas.
SMPC said the Molave mine has been operational since 2016 and met its end of life after the mud flow incident in 2023. The Narra mine was temporarily halted in 2019 due to water seepages.
SMPC resumed operations of the Narra mine in October 2022, and the water elevation was maintained. SMPC expects to produce the remaining coal reserves of 45.43 MMT until 2026.
SMPC said the Acacia prospect is one of the company’s exploration efforts to discover additional coal resources with the objective of developing new mine reserves.
The Acacia prospect has an estimated reserve of 66 MMT.
SMPC said drilling program is being completed in the Acacia prospect and activities prior to coal production are being prepared.
SMPC targets to start coal mining operations for the Acacia prospect as early as the third quarter of 2026.
The company also expects an increase in power demand for its mining operations and plans to install 16-megawatt wind power plant and/or 10-MW solar plant to address the gap between the power capacity of 30 MW and the project power requirement.
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