Semirara not out of coal race — DOE

Semirara Mining and Power Corp. (SMPC) is not being shut out of the government's upcoming coal auction despite tougher bidding rules, with the Department of Energy (DOE) insisting that the country's major coal producer remains free to compete for a new operating contract.

Energy Secretary Sharon Garin said the revised rules would apply equally to all prospective bidders, dismissing concerns that the changes were designed to exclude Semirara from the competition.

“It is the same for everyone," Garin said during a recent media interview.

"If you qualify based on our rules, it's not because we're just making rules particularly for one company. It's for everyone," she added.

Garin clarified that the bidding process had yet to begin and that the changes in the auction rules should not be interpreted as an outright rejection of Semirara's participation.

"The bidding hasn't started yet, and no one has rejected it yet. I think what they mean is like the rules have changed," she said.

The revised bidding framework requires brownfield coal projects to sell at least 80 percent of their output to the domestic market, a move aimed at securing local fuel supply amid geopolitical uncertainties.

Garin explained that the changes would apply specifically to brownfield projects, where coal resources have already been proven commercially viable, while the existing rules for greenfield exploration would remain unchanged.

"For example, what we want is that if it's brownfield, the majority of its production, or 80 percent of the produced coal should be sold domestically," she said.

The proposed requirement would reverse the current arrangement, under which Garin estimated that about 80 percent of coal production is exported.

The energy chief said the government wants to prioritize indigenous energy resources following supply concerns arising from tensions in the Middle East.

"Now, what we want, because of the threat in the Middle East, especially learning from the Middle East issue, is to ensure that we have indigenous sources of fuel," Garin said.

Despite the changes, Garin maintained that all interested companies would have sufficient time to comply with the new requirements.

"They should just wait for the TOR and everything else. Because they will be given a chance to prepare their documents for at least one month," she said.

The DOE is eyeing the announcement of the auction within October, with bid submissions expected in November or December.

The planned auction follows the DOE's earlier decision to terminate the previous bidding process for the Semirara coal operating contract to review its terms and conditions.

The existing contract is set to expire in July 2027, raising concerns over the continuity of coal production should the transition to a new operating arrangement face delays.