Semirara Mining and Power Corp. (SMPC) is urging the government to include technical capability and actual mining experience in the rules for the rebidding of the Semirara coal mine, warning that choosing a winner primarily on the size of its financial offer could put production at risk.
The company made the appeal as the Department of Energy prepares to revise the bidding framework after terminating the 2026 Coal Bid Round earlier this month. The original auction covered three coal areas with combined estimated reserves of about 207 million metric tons.
SMPC said prospective bidders should undergo proper prequalification based on technical capability, operating experience, and financial capacity. The company argued that the scale and complexity of the Semirara mine require an operator with a proven ability to safely and continuously produce coal.
Under the proposed approach previously discussed by government agencies, bidders that meet eligibility requirements would proceed to a ranking stage where the highest financial offer could determine the winner. SMPC said such a system carries risks if the winning bidder lacks the necessary mining expertise and track record.
The Semirara mine in Antique is the country’s largest coal operation and accounts for roughly 90% of domestic coal production. SMPC’s existing Coal Operating Contract No. 5 is scheduled to expire in July 2027. The company reported record coal production of 19.9 million metric tons in 2025, up from 16 million metric tons a year earlier.
SMPC also warned that disruptions in production could affect government royalty collections and communities whose livelihoods depend heavily on mining activity. The company said operational continuity should therefore be considered alongside the financial value of competing offers.
The government, meanwhile, has said the terminated auction will give it time to develop a more comprehensive and transparent evaluation framework. The Energy Department said the revised rules will consider government revenues, domestic coal utilization, energy security, and other measurable benefits for the State and Filipino consumers.
The department has also cited ongoing water seepage concerns at Semirara Island and uncertainties surrounding a legal dispute involving the current operator and coal operation assets as factors in its decision to reassess the bidding parameters.
With the Semirara contract nearing expiration, the upcoming rebid will determine who will operate one of the Philippines’ most important domestic coal resources beyond 2027. Government officials have indicated that the auction could be relaunched in early October.
