SMPC cuts 462 jobs as coal output target falls

MANILA – Semirara Mining and Power Corp. is cutting 462 mine-site jobs in Antique after reducing its 2026 coal production target by more than one-third from last year amid uncertainty over an upcoming government auction.

The redundancies affect about 11.4% of SMPC’s 4,045-person workforce, raising immediate concerns for affected families and the economy of communities that depend heavily on the company’s mining operations.

More than 2,000 of SMPC’s employees came from its host communities as of the end of July 2026, although the company did not specify how many local workers are included in the retrenchment.

SMPC filed a notice of redundancy with the Department of Labor and Employment on Aug. 10 as part of adjustments to its coal operations. ⁠

The company said its lower production target reflects operational planning amid continued uncertainty over the Department of Energy’s coal mine auction.

The DOE now expects to conduct the auction between August and September.

SMPC’s existing coal operating contract is set to expire on July 14, 2027.

“We recognize the impact of this decision on our affected employees and their families, and we will do our best to support them through this transition,” SMPC President and Chief Operating Officer Maria Cristina C. Gotianun said.

Affected workers will receive separation benefits required under labor law and company policy.

SMPC’s Employee Assistance Program will also offer possible redeployment within parent company DMCI Group.

The program includes financial literacy training, skills retraining, livelihood assistance and relocation support.

Displaced workers will also receive job placement services targeting opportunities in the mining and energy sectors.

The workforce reduction comes as SMPC prepares to participate in the DOE’s competitive bidding round under the Philippine Conventional Energy Contracting Program.

The auction will cover 10 blocks on Semirara Island, where SMPC operates the country’s largest coal mining site.

The transition is significant because uncertainty over the mine’s next operator and production plan could affect employment, local economic activity and the continuity of coal supply for power generation.

SMPC has separately petitioned a Makati court for protection against repeated DOE demands to disclose what the company considers proprietary information.

The requested information includes geological and technical data and a comprehensive inventory of mining assets that the department intends to share with prospective bidders.

SMPC argued that it owns the equipment under its coal operating contract and the Coal Development Act.

The company said the assets should neither be disclosed to competitors nor included in rival bids.

SMPC maintained that the government may claim ownership only if the company fails to remove the assets from the production and exploration area within one year after the contract expires.

The company said its court petition seeks to resolve an ownership and disclosure dispute that could harm its legal and financial interests.

SMPC also said the case is not intended to stop or delay the competitive auction.

The DOE has maintained that the bidding process will proceed despite the court dispute.

SMPC said it remains committed to participating in the auction while continuing operations under its existing contract until July 2027.