The Department of Energy (DOE) has terminated the bidding process for pre-determined coal resource blocks under the 2026 Philippine Conventional Energy Contracting Program (PCECP), to make way for a stronger, fairer evaluation system aligned with national interests.
In an advisory released this week, the DOE said it suspended the process in three key areas: 10 coal blocks (10,000 hectares) on Semirara Island in Antique; three blocks (3,000 hectares) in Amulung and Iguig, Cagayan; and five blocks (5,000 hectares) across Benito Soliven, Naguilian and Cauayan, Isabela.
The decision aims to develop a fair, equitable, transparent and comprehensive evaluation framework for areas with confirmed reserves. The updated rules will ensure appropriate, measurable economic returns matching each site’s value and characteristics.
This follows stakeholder feedback during pre-submission conferences, plus critical issues on Semirara Island—including ongoing water seepage and legal concerns—that require reassessment of criteria for awarding the development and production coal operating contracts (DP COCs).
The DOE has not yet outlined the contract status of Semirara Mining and Power. This is particularly significant for the country’s dominant coal producer. Its Antique mining contract expires July 14, 2027. Ahead of this DOE action, SMPC notified the Department of Labor and Employment of a redundancy plan in August, after cutting its 2026 production target by more than one-third from 2025 levels.
The company reported a 24 percent production jump in 2025 to 19.9 million metric tons (MT), up from 16 million MT in 2024, supported by better seam access and expanded environmental clearance. But uncertainty over the bidding process forced operational adjustments. As of July 2026, SMPC employed 4,045 workers—over 2,000 from host communities—with 462 roles affected by the redundancy plan.
Data shows the Philippines consumed 46.67 million MT of coal in 2024, of which 15.92 million MT were locally produced, reflecting the country’s reliance on imports. SMPC accounts for nearly all the domestic output: 14.92 million MT, or 93.7 percent of local production.
This termination underscores the government’s push to balance resource development with robust governance, while raising questions about near-term domestic coal supply stability and the future of the country’s largest mining operation.
