SMPC: Semirara coal auction rules unfair
Semirara Mining and Power Corp. has pushed back against what it calls “unfair” rules governing the auction of the country’s largest coal mine, with the bidding process now facing another delay.
Semirara Mining and Power Corp. (SMPC) has challenged what it calls "unfair" rules surrounding the auction of the Philippines' largest coal mine, potentially causing further delays. The auction for the Semirara mine in Antique faces a setback as SMPC must now disclose its entire asset portfolio and turn them over to the government if it decides to participate.
SMPC argues that this requirement, which only applies to them, violates Presidential Decree 972, which acknowledges their ownership of the assets and gives them a year to remove them after their operating contract expires in July 2027. In addition, SMPC questions the absence of pre-qualification standards, as would-be bidders would not need mining experience to compete.
SMPC's current contract stipulates that financial bid will be the only decisive factor, meaning the bidder with the most resources could win, regardless of their mining expertise. SMPC emphasized that awarding the contract to another operator could halt coal production and royalty payments to the government, contradicting the auction's objective.
SMPC has paid P43.4 billion in government royalties and taxes between 2021 and the first half of 2026. The Philippine Energy Secretary, Sharon Garin, announced that the Semirara coal auction would resume this month, but is now expected in "November or early December," potentially causing further delays. Garin stated that while Semirara is not large enough to impact supply, coal will continue to be imported from Indonesia.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
