KEY POINTS
- Semirara Mining to invest $5 billion in mine expansion over five years.
- Proposal submitted to environmental authorities outlines production and capital costs.
- Expansion comes as coal remains key to the Philippines’ energy strategy despite global phaseouts.
Semirara Mining and Power Corp., the leading coal producer in the Philippines, has announced plans to invest 291.4 billion pesos ($5.07 billion) to expand its mining operations.
According to Mining.com, the company submitted a proposal to the Department of Environment and Natural Resources, outlining a five-year investment plan that includes capital expenditures, production costs, and operating expenses.
The expansion underscores the country’s reliance on coal to meet its energy demands, even as global efforts intensify to reduce dependence on fossil fuels. Countries are transitioning away from coal-fired power plants, and financial institutions are withdrawing support for new coal projects to combat climate change.
Balancing coal expansion and energy transition
Despite efforts to increase the share of renewables in the energy mix, coal remains integral to the Philippines’ energy strategy.
Semirara’s mining operations, located in the province of Antique, supply both domestic and international markets. The company exports coal to major buyers in China, South Korea, and Brunei.
Semirara’s revenue took a hit earlier this year, falling by 20 percent to 23.9 billion pesos due to lower global coal prices. However, the company remains committed to its long-term strategy, focusing on expanding production capacity to maintain market competitiveness.
A pivotal moment for energy policy
The company’s expansion comes as energy policies in the Philippines are at a crossroads. While renewables are gaining traction, coal-fired power plants still play a vital role in the country’s power generation.
The government aims to strike a balance between meeting immediate energy needs and advancing climate goals.
Semirara’s bold investment reflects its confidence in coal’s continued role, even as nations around the globe accelerate coal phaseout plans. The company’s ability to navigate changing market conditions will be crucial in maintaining profitability amid fluctuating commodity prices and growing environmental scrutiny.
