MANILA — The Department of Energy pulled the plug on its 2026 coal bid round covering Semirara Island — and the stock market answered with a double-digit pop for the incumbent. Semirara Mining and Power Corp. (SMPC) surged 20.06% to ₱20.05 in yesterday’s session as the PSEi climbed 0.70%, or 41.70 points, to 5,958.64, with All Shares up 0.54% to 3,318.11 on ₱25.5 billion turnover, Philstar reported.
DOE’s advisory, dated Sept. 15, terminated the round for three pre-determined areas for development and production coal operating contracts after stakeholder concerns at pre-submission conferences. The department also cited ongoing water seepage and other developments on Semirara Island, plus legal considerations warranting a reassessment of evaluation criteria — aiming for a fair, equitable, transparent framework and measurable economic returns.
Energy Secretary Sharon Garin still said bidding would “happen within the year,” even as she flagged that the Semirara mine supplies about 10% of the country’s total coal requirements. The round launched in February and was postponed in April. The proposed framework would have ranked qualified bidders on financial offer alone after a pass/fail eligibility screen.
Consunji-led SMPC opposed treating technical capability as mere pass/fail. Its contract expires in July 2027. Isidro Consunji estimated at least ₱55 billion in equipment capex alone to produce 16 million metric tons a year, with remaining mine life about eight years. Globalinks Securities’ Toby Allan Arce said prolonged uncertainty could affect SMPC capital allocation — while delays also give the current operator a practical edge as expiration nears.
Bottom line: DOE aborted the 2026 Semirara auction, but Garin still clocks a bid “within the year.” Markets priced the pause as an incumbent win — SMPC +20.06%. Watch whether revised criteria reopen competition before the July 2027 cliff, or extend runway for the operator sitting on ~10% of national coal supply.
