SMPC seeks fairer terms in Semirara coal auction
SEMIRARA Mining and Power Corp. is charging the Department of Energy with blocking it from the upcoming auction for the Semirara mine through restrictive new rules and a lack of transparency, saying that the bidding framework for the Semirara coal resource violates standard protocols and forces the company out of the process.
Photograph courtesy of smpc
Semirara Mining and Power Corp. (SMPC) seeks clearer, more balanced bidding rules for the Semirara coal mine, raising concerns that the government’s revised requirements could put its more than P55 billion in mining investments at risk and limit its participation in the auction.
In a statement on Tuesday, the company questioned a provision in the Department of Energy’s (DoE) new bidding guidelines that requires SMPC to turn over its mining assets to the government before it can participate in the second auction.
Requirement puts SMPC at a disadvantage
SMPC said the requirement places the incumbent operator at a disadvantage despite its substantial investments and decades of experience operating the mine.
“In other words, the DoE is telling us not to bid,” SMPC said.
The company maintained that Presidential Decree 972 recognizes its ownership of the mining equipment, which it said should not be subject to mandatory turnover as a condition for joining the auction.
SMPC has invested more than P55 billion in its mining operations, including hundreds of heavy equipment units used to extract coal from deposits approximately 350 meters below sea level.
Concerns over DoE’s decision
The company also raised concerns over the DoE’s decision to shift the primary basis for selecting the winning bidder from technical capability to the highest financial offer.
It warned that prioritizing financial bids without adequately assessing operational readiness could create challenges in maintaining coal production when the new operator takes over in July 2027.
“The highest bidder with zero mining experience will most likely produce zero coal output and zero government share,” SMPC said.
According to the company, a new operator would need to procure specialized mining equipment and recruit and train approximately 4,000 workers within a limited transition period to sustain operations.
SMPC said operating the mine also requires technical expertise in managing seawater intrusion and extracting coal from deep deposits, capabilities developed through years of experience.