Philippines coal producer Semirara Mining and Power is planning to invest approximately $5.07bn (291.4bn pesos) to expand its mining operations.

The five-year proposal has been submitted to the Department of Environment and Natural Resources.

The expansion will involve running the existing Molave and Narra pits at the same time, followed by the Acacia pit once the first two are depleted.

The Molave pit, which reached the end of its life in November 2023, has produced 86.06 million tonnes of coal since 2016. The entire expansion is set to continue until 2027.

At the Philippine Stock Exchange, Semirara said the proposal comprises production costs, capital expenditures and operational expenses.

“These estimates are subject to change depending on various circumstances or factors, including operational efficiencies and final approval from our regulator, the Department of Energy, in accordance with the company’s coal operating contract,” Semirara said in the filing.

Semirara reported a 20% decline in coal revenue to 23.9bn pesos in the first half of the year due to falling prices, reported Bloomberg News.

Despite the global shift towards renewable energy, Philippines continues to depend heavily on coal for power generation.

However, the country has outlined strategies to increase the use of renewables within its energy mix.

Semirara exports coal to several countries including China, South Korea and Brunei.

In May 2024, Reuters reported that the Philippines intends to establish three additional processing plants to bolster a downstream industry for its plentiful nickel resources.

This initiative follows interest from countries like China and the US in the Philippine mining sector.

Currently, the Philippines operates two nickel processing plants, both partially owned by Nickel Asia.

To capitalise on its vast unexploited mineral reserves, the Philippines is considering potential incentives for mining companies to encourage further development and investment in the sector.