‘Complete secrecy’ in Semirara coal auction flagged
Semirara Mining and Power Corp. has criticized what it claims is “complete secrecy” surrounding the award of a new operating contract for the country’s largest coal mine.
The Semirara Mining and Power Corp. (SMPC) has expressed outrage over what it perceives as "complete secrecy" during the recent auction for a new operating contract at the largest coal mine in the Philippines. SMPC argues that the auction contravenes established bidding protocols, citing a series of missing elements that suggest a lack of transparency in the selection of the successful bidder.
Notably, there were no bid bulletins, pre-qualification screenings, or official responses to inquiries made by SMPC. The company also highlighted the absence of model contracts and minutes from the bidding process.
Launched in February, the Semirara coal auction was put on hold in April and subsequently cancelled in September. In response, the Department of Energy (DOE) decided to suspend the initial bidding round to reassess the rules and criteria for contract awarding. As part of the joint administrative order, SMPC is now required to disclose its entire asset portfolio and hand it over to the government if it chooses to participate in the auction.
According to SMPC, this effectively bars it from bidding, stating that the DOE is "telling us not to bid."
The Semirara coal auction could ultimately force SMPC out of business, the company warns. The STAR has requested a comment from Energy Secretary Sharon Garin but has not yet received a response. SMPC had previously been ordered to transfer its equipment and proprietary know-how to the DOE, but it challenged this requirement under Presidential Decree 972, which entitles it to claim ownership of the assets.
The company maintains that the DOE has not addressed its concerns about the bidding process, despite sending multiple letters.
With its current contract set to expire in July 2027, SMPC has sunk over P55 billion into its mining operations. The company has invested heavily in heavy equipment to access coal deposits located approximately 350 meters below sea level. SMPC claims that the winning bidder will have to acquire these assets within a matter of months, employ and train around 4,000 workers, and achieve significant coal output.
The company cautions that a high bidder with no prior mining experience is likely to produce minimal coal and contribute little to the government's share.
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.
