The Department of Energy (DOE) is starting preparations this year for the public bidding of the coal mining rights on Semirara Island, as the contract held by Semirara Mining and Power Corp. (SMPC) expires in July next year.
Energy Secretary Sharon Garin said the coal operating contract (COC) cannot be renewed and must instead be auctioned. She said SMPC may join the bidding process.
The DOE said early preparations are needed to ensure a smooth transition and avoid disruptions in operations. The Department of Justice has issued an opinion saying that the contract should be opened to bidding rather than extended.
While the process will be competitive, Garin said the SMPC has an advantage because of its experience, equipment, and long history of operations. The DOE said the goal is to select the most qualified operator.
SMPC first secured the contract in 1977, with its expiration later extended to 2027. The company took over operations in 1997 through DMCI Holdings Inc..
In 2025, SMPC received an amended environmental clearance from the Department of Environment and Natural Resources to expand its mining area and increase annual coal production from 16 million to 20 million metric tons between 2025 and 2027.
Semirara is the country’s largest coal-producing site. In 2024, the Philippines consumed 46.67 million metric tons of coal but produced only 15.92 million metric tons locally. SMPC accounted for 93.7 percent of local output.
The upcoming bidding is seen as significant for ensuring continued coal supply, energy security, and fair competition in the country’s mining sector.
