‘Complete secrecy’ in Semirara coal auction flagged

MANILA, Philippines — Semirara Mining and Power Corp. (SMPC) has criticized what it claims is “complete secrecy” surrounding the award of a new operating contract for the country’s largest coal mine.

The current operator of the Semirara mine in Antique said the auction violates established bidding protocols, raising concerns over the lack of transparency in the selection of the winning bidder.

“There were no bid bulletins, no pre-qualification to screen the unqualified, no official reply to questions raised, no reply to all the letters sent by the current mine operator, no model contract, no minutes,” the company said in a statement yesterday.

Launched in February, the Semirara coal auction was postponed in April before being terminated in September.

The Department of Energy (DOE) scrapped the original bidding round to revise the rules and reassess the criteria for awarding the contract.

Under a joint administrative order, SMPC is required to disclose its complete asset portfolio and surrender them to the government should it participate in the auction.

“In other words, the DOE is telling us not to bid,” the Consunji Group’s integrated energy company stressed.

The Semirara coal auction, SMPC said, could eventually force the company out of business.

The STAR has sought comment from Energy Secretary Sharon Garin, but has yet to receive a response.

SMPC was earlier directed to turn over its equipment and proprietary know-how to the DOE. But it invoked Presidential Decree 972, which grants it ownership of the assets.

The company said the DOE had not responded to several letters it sent raising concerns about the bidding process.

SMPC, whose current contract is set to expire in July 2027, has invested over P55 billion in its mining operations, deploying hundreds of pieces of heavy equipment to access coal deposits about 350 meters below sea level.

“The winning bidder will have to procure in just a few months these equipment and trucks and employ and train around 4,000 workers if it is to produce coal,” it said.

“The highest bidder with zero mining experience will most likely produce zero coal output and zero government share.”