Semirara Mining and Power Corporation (SMPC) has asked a Makati court for protection against the Department of Energy’s (DOE) demand for proprietary information tied to the bidding process for the Semirara mine.
The DOE had previously directed SMPC, in four separate letters, to submit detailed information on its assets. These included geological and technical data, as well as a detailed list of equipment.
SMPC said the DOE plans to share the information with other bidders for the Semirara mine.
The company argued that the assets will not be made available for use by other bidders and should therefore not be considered in their bid submissions.
SMPC said it owns the assets under its coal operating contract and the Coal Development Act.
The company said the government can only own the assets if SMPC fails to remove them from the production and exploration area within one year after its contract ends in July 2027.
“Government ownership of these assets is merely future and conditional. The bidding is supposed to choose a winner that has a viable mine plan and knows how to run one to make sure coal production is seamless to protect the country’s baseload electricity generation. It is not about SMPC and how it runs the mine,” SMPC said in a statement.
The company said the bidding process is best served when each participant conducts its own technical studies and develops its own approach, rather than relying on information generated through SMPC’s decades of investments and expertise.
The disclosure also raised operational concerns at the Acacia mine, where SMPC said continuous pumping has kept water seepage under control.
“But the pumps are the mine’s lifeline: if pumping stops, Acacia could become completely flooded and may no longer be operable. If that happens, roughly half of the island’s recoverable coal reserves will be lost,” SMPC said.
The DOE, according to SMPC, argued that equipment acquired by the company becomes government-owned once SMPC has recovered its costs.
SMPC maintained that assets outside the production and exploration areas, as well as equipment removed from these areas within one year from the end of the contract, remain with the company.
The company clarified that its petition is not intended to stop or delay the bidding process. It filed the petition to seek clarity on a legal issue that could affect its legal and financial interests.
The company added that it remains committed to participating in the bid, cooperating with the DOE, and complying with its regulatory obligations.
SMPC said the filing has no impact on ongoing mining operations, which will continue as normal until Coal Operating Contract No. 5 expires in July 2027.
How should the government balance transparency in mine bidding with the protection of proprietary technical data from existing operators?
Follow Ang Minero on Facebook and LinkedIn for more updates.
