MANILA, Philippines — Shares of Consunji-led Semirara Mining and Power Corp. (SMPC) and its parent firm DMCI Holdings Inc. suffered a massive rout on Monday, February 16, 2026, after the Philippine government formally rejected a request to extend the country’s largest coal mining contract.
The negative development wiped out approximately P51.2 billion ($883 million) in combined market value as investors reacted to the looming expiration of the group’s core earnings driver.
Market Reaction
By the close of trading on Monday:
- Semirara (SMPC): Shares plunged as much as 21.23% to P26.15 apiece.
- DMCI Holdings: Share price was slashed by 12.99% to P9.38 each. The sell-off reflects deep investor concern, as coal operations account for nearly 60% of DMCI’s net income and roughly 43% of SMPC’s earnings (as of 9M 2025).
The Decision: Auction Over Renewal
The Department of Energy (DOE), led by Secretary Sharon Garin, announced that the 50-year coal operating contract for Semirara Island in Antique—set to expire in July 2027—will not be renewed.
- Legal Guidance: The decision follows a Department of Justice (DOJ) opinion stating that under the Constitution, the contract cannot be further extended after reaching its legal limit.
- Public Auction: Instead of a 13-year extension sought by the firm, the DOE plans to conduct a formal auction for the mining rights before the end of 2026.
- Constitutional Limits: Secretary Garin noted that while local firms can bid, foreign participation may be restricted due to constitutional limitations on natural resource extraction.
Impact and Competitive Edge
SMPC has operated the mine since 1977 and currently produces 97% to 99% of domestic coal. Despite the non-renewal, the company maintains several advantages:
- Technical Advantage: SMPC holds an extensive equipment fleet and decades of experience with complex open-pit engineering and sea-barrier technology.
- Right to Bid: SMPC is eligible to participate in the upcoming auction. Secretary Garin acknowledged that the firm is “the most qualified” and “already knows what to do.”
- Power Segment Risks: Analysts warn that if SMPC loses the contract, its power segment—which relies on Semirara coal for cost-competitive generation—could face severe margin pressure.
Environmental and Religious Context
The government’s decision aligns with pressure from the Catholic Church and environmental advocates. Bishop Gerardo Alminaza, president of Caritas Philippines, recently urged the DOE to deny the extension, calling the continuation of coal mining “reckless” in the face of the climate crisis.
While the auction offers a path for SMPC to retain its operations, the transition to a competitive bidding process introduces significant regulatory uncertainty that is expected to weigh on the company’s valuation until the auction outcome is finalized later this year.