Semirara Mining and Power Corp. said the revised bidding rules for the 2026 coal auction proposed by the Department of Energy (DOE) were unfair and not acceptable to the company.
The mining firm said the new bidding rules require current or prospective mine operators to surrender or transfer ownership of their existing mining assets to participate in the auction.
“We are the only company covered by this rule. This is unfair and basically bars us from bidding,” Semirara said in a statement.
“To require us to surrender ownership of our assets as a condition to bid is against Presidential Decree 972, which clearly says that such assets are ours, and we can remove them within one year from the expiration of our operating contract,” it added.
Semirara also argued that the highest financial bid being the sole factor to determine the awarding of the contract was not ideal as it did not take into account the expertise needed to operate the coal mine.
“The shift to the highest bidder from the most capable mining outfit as the main award criterion early this year is puzzling, because nobody stands to benefit from the new bid rules except the potential winner, which only has to submit a financial bid to win,” the company said.
“Semirara is no ordinary mine. We are mining in the sea, deeper than the height of the highest building in Makati. We have to pump out the equivalent of 12 Olympic-size swimming pools or Pasig River’s torrent every hour just to get to the coal,” the
company explained.
Energy Secretary Sharon Garin, meanwhile, said the coal auction would definitely be held by this year.
