The company received the contract from the Department of Energy dated April 29, “covering two parcels of coal-bearing land” with a total area of 7000 hectares.

The contract involves a two-year exploratory period that will begin when the contracts are signed.

“The company has committed to spend not less than $P148,170,900 for its work programs for the first two years in the conduct of geological investigation, geodetic survey, sub-surface exploration for the coal contract area,” Semirara said in its disclosure.

If commercial quality coal is found within this time frame a development and production phase of up to 10 years will follow. This phase can be extended for a further 10 years if required.

Semirara was one of seven companies to be offered a contract in the fourth Philippine Energy Contracting Round.

The country's largest coal miner, Semirara is majority-owned by the Consunji Group, a local conglomerate with interests in power generation, construction, utilities, nickel mining and real estate.

Semirara’s run of mine coal production dropped 55% during the first quarter of 2013 due to the closure of the company’s Panian open pit mine in Antique.

The mine was closed for about three weeks after a landslide hit the mine, killing 10 miners.