The Department of Energy (DOE) has signaled that Semirara Mining and Power Corporation’s (SMPC) coal operating contract in Antique will be auctioned instead of renewed, prompting the listed firm to clarify that it has not received a formal final decision on its request for a term adjustment.
In a report published by Philstar, Energy Secretary Sharon Garin was quoted as saying that the government’s direction is to have the contract auctioned after a Department of Justice (DOJ) opinion stated that it cannot be renewed. SMPC’s current coal operating contract is set to expire in 2027, and the auction process is expected to take place within the year to ensure a seamless transition.
According to the report, the upcoming auction would not be awarded based solely on the highest financial bid, but on qualifications. Garin also said that the current operator would be allowed to participate in the bidding process.
Following the news report, SMPC issued a clarification through a SEC Form 17-C filed with the Philippine Stock Exchange.
“We clarify that the decision on the Coal Operating Contract rests with the DOE, and we have not received any formal notice of a final decision on our request for term adjustment,” the company said in its filing.
SMPC added that management believes its decades of experience in managing complex engineering projects on Semirara Island, along with its established operations, technical expertise, and extensive equipment fleet, provide a strong competitive advantage in the bidding- which it has communicated to the DOE.
SMPC is the country’s largest coal producer and accounts for nearly all domestic coal output. Its coal operating contract grants it the exclusive right to explore, develop, and operate coal mines on Semirara Island.
Will the regulator formally confirm the auction process, and how could this shape the future of coal operations on Semirara Island?
Follow Ang Minero on Facebook and LinkedIn for more updates.
