Semirara Coal Auction to Restart Next Month Under Revised Rules

MANILA, Philippines — The auction for the country’s largest coal mine on Semirara Island in Antique is set to be relaunched next month as the Department of Energy (DOE) moves to finalize recalibrated bidding rules. Energy Secretary Sharon Garin told The STAR that the new coal auction is targeted for early October, following the previous bidding round's cancellation. Last week, the DOE terminated the 2026 coal bid round, which was launched in February but postponed in April. This decision was made after concerns raised by stakeholders during pre-submission conferences necessitated a reassessment of the evaluation criteria. The DOE cited continuing water seepage and other developments affecting Semirara Island, along with legal considerations, as reasons for the termination. The move aims to enable the DOE to develop a “fair, equitable, transparent and comprehensive” framework for bidding on areas with confirmed or established coal reserves. “These coal reserves are owned by the state, and it is the government’s right to reassess or terminate a bidding process if the existing parameters are not sufficient enough to protect state assets and to ensure that the benefits will be maximized for the country,” Garin stated in a recent media briefing. The DOE and the Department of Environment and Natural Resources held a second public consultation earlier this week on a draft joint administrative order outlining new guidelines and procedures for the auction. The proposed guidelines, as previously reported, will make the financial offer the “sole ranking factor” among qualified bidders. This marks a departure from Garin’s earlier statements that the coal auction would prioritize technical qualifications over financial bids. Consunji-led Semirara Mining and Power Corp. (SMPC), the current operator of the Semirara coal contract, has urged the DOE to reinstate technical capability and work program quality as weighted criteria. SMPC also warned that an exclusive focus on financial bids could be susceptible to abuse, potentially allowing bidders with weak technical capabilities to qualify if they meet minimum requirements. Garin, however, defended the proposed framework, emphasizing its focus on clear and measurable benefits. “We want to make sure that the mining of coal in Semirara is maximized and optimized,” she stressed. “It will have a direct effect on the price of electricity in the Philippines and will assure us of improved energy security,” Garin added.