SMPC aligns workforce as seawater inflows limit Acacia operations

Semirara Mining and Power Corporation (SMPC) has been managing seawater entering its Acacia mine. Despite ongoing efforts to control these inflows, 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.

Managing these seawater inflows over the longer term requires substantial investment in pumping equipment, power systems and other infrastructure. Uncertainty surrounding the coal bid round complicates planning for these investments.

Without adequate capital spending, the risk of flooding and losing access to Acacia’s remaining coal reserves increases. These conditions have limited operations and led to the partial suspension of stripping activities at the Acacia mine, which are needed to access coal for future production.

Management is therefore aligning manpower with reduced operating requirements through a supplemental redundancy program affecting 996 employees. SMPC recognizes the impact on affected employees and their families and is committed to supporting them through the transition.

SMPC’s 2026 coal production target remains at 12 million metric tons. Disrupted stripping activities at Acacia will affect 2027 production, as the mine was expected to supply most of next year’s coal output.

The Department of Energy (DOE) conducted a site visit at Acacia from September 24 to 26. SMPC continues to coordinate with the DOE on the mine’s operating challenges and longer-term options.