SMPC challenges DoE over mining investment climate

Semirara Mining and Power Corp. (SMPC) has challenged the Department of Energy’s (DoE) industrial policy, warning that its coal bidding rules could discourage mining investments and undermine the government’s efforts to attract investors.

In a statement on Monday, the Consunji-led company questioned the government’s decision to impose restrictions on established mining operators while allowing bidders without proven mining experience to compete based primarily on financial offers.

“The bidding rules discourage industrialization. We hope the DoE realizes that its bidding rules directly contradict the sales pitch of our top officials when they go abroad to invite investors,” SMPC said.

SMPC argued that the bidding framework could send the wrong signal to investors by placing existing operators at a disadvantage despite their investments, operational experience and contributions to the economy.

Under the contested rules, SMPC said it would be required to surrender its mining assets, including trucks and heavy equipment, to the government as a condition for submitting a bid.

Meanwhile, another known bidder, which the company claimed has no established mining experience, would not face the same restriction.