Semirara coal auction restarts next month

MANILA, Philippines — The auction for the country’s largest coal mine on Semirara Island in Antique is set to be relaunched next month as the Department of Energy (DOE) moves to finalize recalibrated bidding rules.

“Early October,” Energy Secretary Sharon Garin told The STAR when asked for the timeline for the new coal auction after the previous bidding round was scrapped.

Last week, the DOE terminated the 2026 coal bid round, which was launched in February but postponed in April, following concerns raised by stakeholders during the pre-submission conferences.

It cited continuing water seepage and other developments affecting Semirara Island, along with legal considerations, saying these warranted a reassessment of the evaluation criteria for the award of the contracts.

The termination was also intended to enable the DOE to develop a “fair, equitable, transparent and comprehensive” framework for bidding on areas with confirmed or established coal reserves.

“These coal reserves are owned by the state, and it is the government’s right to reassess or terminate a bidding process if the existing parameters are not sufficient enough to protect state assets and to ensure that the benefits will be maximized for the country,” Garin said in a recent media briefing.

The DOE and the Department of Environment and Natural Resources held a second public consultation earlier this week on a draft joint administrative order outlining new guidelines and procedures for the auction.

The proposed guidelines, first reported by The STAR, will make the financial offer the “sole ranking factor” among qualified bidders.

The provision departs from Garin’s earlier pronouncements that the coal auction would not hinge on financial bids but on bidders’ technical qualifications.

Consunji-led Semirara Mining and Power Corp. (SMPC), the current operator of the Semirara coal contract, has urged the DOE to restore technical capability and work program quality as weighted criteria in the bidding.

SMPC also warned that relying only on financial bids could be open to abuse, potentially allowing bidders with weak technical capabilities to qualify as long as they meet the minimum requirements.

Garin, meanwhile, defended the proposed framework, saying it places greater weight on clear and measurable benefits.

“We want to make sure that the mining of coal in Semirara is maximized and optimized,” she stressed.

“It will have a direct effect on the price of electricity in the Philippines and will assure us of improved energy security,” Garin added.