More than 400 workers have already lost their jobs at Semirara Island’s coal mine, with local businesses now bracing for another possible round of layoffs, as the Department of Energy’s decision to terminate this year’s coal bidding leaves the future of the country’s largest coal operation uncertain.

Business owner Janice Lim said the first round of retrenchment had already reduced spending in the island community, where businesses depend heavily on workers and their families for customers.

“The first round of retrenchment, which affected more than 400 workers, already had a significant impact on small businesses like ours,” Lim said during a peace rally on Semirara Island.

“And we’ve been told that nearly 1,000 more workers may be laid off next week,” she added.

The reported possibility of further layoffs raises questions about the immediate economic consequences of the DOE’s decision, particularly for a community whose local economy is closely tied to coal mining.

The Department of Energy terminated its 2026 Coal Bid Round on Sept. 19, saying it needed to reassess the terms for awarding future Coal Operating Contracts (COCs). The bid round covered three predetermined areas, including areas on Semirara Island.

The DOE cited ongoing water seepage that may affect recoverable coal reserves on Semirara Island, as well as a legal dispute involving the government and the current operator over coal operation assets.

But the termination came after months of delays in the planned auction and as Semirara Mining and Power Corp. (SMPC) had already begun reducing its workforce.

SMPC filed a redundancy notice covering 462 mine-site employees in August, citing uncertainty surrounding the coal auction and a reduction in its 2026 production target.

The company’s existing COC remains valid until July 14, 2027.

That leaves a key question for the DOE: what happens to workers and the island economy while the government reworks the terms and timeline for the next coal operating contract?

The DOE said the termination was intended to give the government time to establish a stronger bidding framework that would secure appropriate government revenues, increase domestic coal utilization and provide measurable and enforceable benefits to Filipino consumers.

The department has not, however, publicly provided a new timetable for when the affected coal areas will be offered again following the termination of the 2026 bid round.

The uncertainty is particularly significant on Semirara, where SMPC remains the current operator and accounts for more than 90 percent of the country’s locally produced coal.

For businesses such as Lim’s, the issue is already being felt before the existing contract expires.

“The delayed bidding can create uncertainty, and we business owners can really feel its effects. Local residents will have less spending power,” Lim said.

The DOE’s next steps will determine not only who may operate the coal resource after July 2027, but also how the government intends to manage the transition for workers, businesses and the community while the bidding framework is being reassessed.

As of Friday’s (Sept. 25) rally, residents were asking the DOE to provide clearer information on the future of the mine and the potential effects of the prolonged uncertainty on employment and the island’s economy.IMT