SEMIRARA Mining and Power Corp. (SMPC) on Friday said that it would be laying off 996 employees due to flooding at its Acacia mine.
“Management is therefore aligning manpower with reduced operating requirements through a supplemental redundancy program affecting 996 employees,” Semirara said in a disclosure.
“SMPC recognized the impact on affected employees and their families and is committed to supporting them through the transition,” it added.
The company said that despite efforts to control flooding, “the flow rate has increased to approximately 30,000 cubic meters per hour, enough to fill 12 Olympic-sized swimming pools every hour. This volume exceeds current pumping capacity and heightens the risk of flooding at Acacia.”
These conditions were said to have limited operations and led to the partial suspension of stripping activities at the Acacia mine, required to access coal for future production.
Semirara said seawater volumes had caused the collapse of North Block 1 Dam 2 and redirected excess water toward the Acacia mine pit.
“Managing these seawater inflows over the longer term requires substantial investment in pumping equipment, power systems and other infrastructure,” Semirara said.
“Uncertainty surrounding the coal bid round complicates planning for these investments,” it added.
“Without adequate capital spending, the risk of flooding and losing access to Acacia’s remaining coal reserves increases.”
The government has declined to extend Semirara’s contract beyond July 14, 2027, citing legal limits. The Department of Energy (DOE) this month halted the auction process amid concerns raised by stakeholders, but has since set an October relaunch.
Semirara said that DOE representatives visited the frim Sept 24 to 26 and that it was continuing to coordinate with the department regarding the mine’s “operating challenges and longer-term options.”
“Our 2026 coal production target remains at 12 million metric tons, but the disrupted stripping activities at Acacia will affect 2027 production, as the mine was expected to supply most of next year’s coal output,” Semirara said.
The company’s shares fell by 70 centavos, or 4.96 percent, to close at P13.40 each on Friday.