BIZ BUZZ: Garin unfazed by Semirara risk

MANILA, Philippines — Pausing Semirara coal mine operations may not pose a big loss for the Philippine power sector, the energy chief says, as the planned bidding faces a fresh delay.

“On a general view, Semirara actually exports,” Department of Energy (DOE) Secretary Sharon Garin said when pressed if the government can afford another delay in the coal auction, which includes the highly prized Semirara mine site.

Only a small portion goes to local power plants, the official said.

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“It’s not like all of our power plants, coal power plants, depend on Semirara,” she said.

“And if there’s need for more coal, while there are still some issues, it can easily be bought from, procured from local mining sites or [we could] import more from other countries,” Garin added.

Consunji-led Semirara Mining and Power Corp. (SMPC) has long been operating on the island with a 50-year government contract that will end in July 2027.

With its wish to extend the deal for 13 more years getting turned down, the government is opening the coal mine site to other potential entrants.

The auction was initially set for launch in late April, then moved back to July, then September.

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Garin said more time is needed, with the agency targeting to welcome investors vying for the coal blocks in November—or maybe a little later.

Garin admitted she’s delaying the auction to get the best deal, including an increase in government revenue sharing and securing more coal for domestic use.

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For instance, she reiterated that the majority of local production, reaching 80 percent, is being released to foreign markets.

Data from SMPC showed that as of first half 2026, 51 percent of its shipments were exported while the rest went to domestic clients.

Given the current scenario, the DOE official said they would want the next operator to allot majority of coal production to power generators here.

Although the delays have been weighing down on SMPC’s operations, forcing the group to trim its coal production targets and even workforce, Garin still believes the firm has a fighting chance.

“SMPC is a very qualified candidate for the bidding round that we will be doing,” Garin said. – Lisbet K. Esmael

SMIC mining exit happening by 2027

SM Investments Corp. (SMIC) is looking to completely exit the mining sector by next year, with plans to transfer its stake in Atlas Consolidated Mining and Development Corp. to another listed company within the Sy family’s portfolio.

SMIC president and CEO Frederic DyBuncio said the conglomerate intends to move its roughly 34-percent stake in Atlas to Dominion Holdings Inc.

“The intention for SMIC is to completely move out from the mining sector,” DyBuncio said in a briefing. “We want to move the shareholding we have in Atlas into another listed entity, which is still belonging to the family.”

Asked whether the restructuring would likely be completed by 2027, DyBuncio said: “Most likely so.”

This means Atlas will remain part of SMIC’s portfolio—and continue contributing to its results—for the remainder of 2026.

The planned transfer comes as Atlas’ performance improves. In the first half, SMIC said its portfolio investments had delivered stronger results partly due to Atlas’ turnaround, as it benefited from higher copper prices.

The mining company was among the businesses that helped SMIC grow consolidated net income by 8 percent to P45.9 billion in the first six months of the year. —Emmanuel John B. Abris