SMPC to invest in coal mining expansion

Semirara Mining and Power Corporation (SMPC) announced its intention to invest Php 291 billion in expanding its coal mining operations on Semirara Island in Caluya, Antique.

Manila Standard reported that in the documents filed with the Department of Environment and Natural Resources (DENR), SMPC detailed that the investment would enhance the existing Molave and Narra pits as well as develop a new area.

The expansion project encompasses the mined-out Panian pit, along with the Narra and Molave coal mine operations, and the upcoming Acacia deposit.

SMPC emphasized the significance of this project stating that mining activities promote local employment, infrastructure growth, and economic development.

The company explained that the ongoing operations at the Molave and Narra mines, along with future developments in Acacia, are vital for sustaining coal production, which is necessary for electricity generation and cement manufacturing.

Additionally, the expansion plans are supported by the discovery of additional coal resources, amounting to 90 million metric tons (MT), and reserves of 72 million MT at the Acacia site.

Acacia is situated to the northwest and is part of an upthrown block relative to the Molave pit.

SMPC indicated that while Acacia has met technical and economic criteria, necessary preparations and site developments must be established to manage seawater intrusion by implementing a sea barrier.

The company stated that the “open pit” mining method currently in use will also be applied to the Acacia deposit, given its similar geological formation to the Molave and Narra mining areas.

The Molave mine has been operational since 2016 but faced challenges, including an end-of-life situation following a mudflow incident in 2023. The Narra mine was temporarily suspended in 2019 due to water seepages.

Operations at the Narra mine resumed in October 2022, with water levels being effectively maintained. SMPC anticipates extracting the remaining coal reserves of 45.43 million MT by 2026.

With estimated reserves of 66 million MT, the Acacia prospect is currently undergoing a drilling program, and preparations for coal production are underway.

SMPC aims to commence coal mining operations at the Acacia site by the third quarter of 2026.

In response to increasing power demands for its mining activities, the company plans to establish a 16-megawatt (MW) wind power plant and/or a 10 MW solar facility to bridge the gap between its 30 MW power capacity and project power requirements.