Semirara Mining and Power Corporation has challenged the Department of Energy’s latest bidding rules, warning that the revised guidelines undermine the national government’s intent to foster long-term industrial productivity and resource stability. The company said that the current direction threatens a proven domestic success story without providing clear financial or developmental benefits to the public, the national government, or the host municipality.
The controversy centers on mid-year revisions to the government bidding process for coal mining operations. According to the company, early guidelines prioritized technical mining competence, but subsequent changes shifted the primary criterion exclusively to the highest monetary bid. The company noted that these updated rules require it to relinquish existing capital assets—such as heavy machinery and transport trucks—to qualify, while allowing alternative bidders with no documented mining track record to compete based solely on bid value. SMPC further pointed out that the process lacked standard pre-qualification evaluations and routine information bulletins, while omitting penalties for potential operational failures or zero production outputs.
In its statement, the power firm emphasized that penalizing established industrial operators conflicts with national economic policy, which aims to attract foreign investment and build self-sufficient infrastructure. Over its 29-year operational span, the company has contributed 70.5 billion pesos to government revenues, alongside an annual 600 million pesos in local direct funding for healthcare, education, and livelihood projects in Caluya. The company warned that disrupting these operations places over 4,000 direct jobs at risk and endangers stable domestic energy supplies, highlighting that its coal-fired power plants delivered baseload electricity at an average of 4.05 pesos per kilowatt-hour in September, compared to 14.00 pesos per kilowatt-hour for liquefied natural gas plants.
The company cautioned that selecting an inexperienced operator risks total operational stoppage, which would ultimately eliminate future royalty payments and defeat the Department of Energy’s stated goal of maximizing state revenues. SMPC urged energy officials to realign the bidding framework with broader national industrial goals to maintain investor confidence and preserve local economic development.
