The Department of Energy (DOE) has launched a new Pre-Determined Area (PDA) Bid Round which offers 18 coal mining blocks for bidding, including 10 located in Semirara Island.
In a media release dated February 18, the DOE said the coal blocks will be awarded through Coal Operating Contracts (COCs) under Department Circular DC 2026-02-004. The offering covers 10 blocks in Semirara and eight additional blocks in Cagayan and Isabela.
The department said the bid round is part of its process for allocating coal resources through a competitive and transparent mechanism. Interested parties will undergo a qualification-based selection process in accordance with existing rules.
In response to clarification, the DOE confirmed that the 10 Semirara blocks are covered by Coal Operating Contract No. 5 (COC5). A coal operating contract grants the holder the exclusive right to explore, develop, and produce coal within a designated contract area, still subject to regulatory requirements.
The inclusion of Semirara blocks under COC5 comes after the DOE previously indicated that Semirara Mining and Power Corp.’s (SMPC) existing coal operating contract in Antique may not be renewed outright and could instead be subjected to auction. While the department has not directly linked the PDA bid round to that earlier development, the new offering covers blocks within the same contract area referenced in prior discussions.
Under a PDA bid round, the government identifies specific coal blocks for public offering and awards contracts through a structured evaluation process. Selection is based on compliance with qualification standards set by the DOE.
SMPC, in its most recent disclosure to the Philippine Stock Exchange, has clarified that it has not received any formal response from the DOE regarding its request for term adjustment under COC5. The company reiterated that its current COC remains valid until July 14, 2027 and that its operations continue uninterrupted. The company also said in the statement that if the formal bidding process is confirmed, the company is prepared to submit the appropriate mine plan and documentations required.
Who will ultimately secure the Semirara blocks covered by COC5 under the PDA bid round?
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