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Philippines relaunches coal mining rights auction; targets Jan 2027 award despite concerns

The Philippine Department of Energy has relaunched bidding for coal mining rights across three areas estimated to hold about 207 million tonnes of reserves, including the Semirara site in Antique, targeting contract signing by January 2027 despite unresolved concerns over the auction terms, local media reported.

A notice of bidding released on November 11 invited all qualified participants to compete for coal operating contracts covering five blocks across Benito Soliven, Naguilian and Cauayan in Isabela, three blocks spanning Amulung and Iguig in Cagayan, and 10 blocks on Semirara Island, which has been operated by Semirara Mining and Power Corp (SMPC), whose operating contract is set to expire in July 2027.

Under the indicative schedule, a pre-bid conference is set for November 13 with bids due December 11. Bids will be opened the same day, followed by substantive evaluation until December 16, release of qualified bidders on December 18 and opening of financial proposals on December 21.

The Renewable Energy Committee-Joint Auction Organizers will rank qualified bidders on three criteria: government share at 60% weight, domestic supply commitment at 30% and signature bonus at 10%.

The highest-rated bidder is expected to be identified on December 28, with a notice of award scheduled for January 11, 2027 and contract signing targeted for January 13, roughly six months before the existing Semirara contract expires in July 2027.

The notice follows Joint Administrative Order 2026-01 issued by the energy department and the Department of Environment and Natural Resources, whose provisions have drawn stakeholder objections. The auction was originally scheduled for April but was terminated as the department overhauled awarding rules amid legal and operational hurdles.

The SMPC has challenged parts of the rules, arguing they could undermine existing rights, particularly a requirement for operators to turn over assets to the department.

Pangasinan Representative Mark Cojuangco has urged the department to address the concerns, warning in a privilege speech that uncertainty around the auction could threaten baseload power supply given the Semirara mine's significant share of domestic coal supply for industry and power generation.

The Semirara blocks are the largest open-pit coal mining site across the Philippines, with estimated coal reserves of about 160 million tonnes, accounting for more than 90% of domestic coal production.

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Jl. H.R. Rasuna Said Block X-7 Kav.5,

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Email Sekretariat.

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Alamat Sekretariat.

Menara Kuningan Building.

Jl. H.R. Rasuna Said Block X-7 Kav.5,

1st Floor, Suite A, M & N.

Jakarta Selatan 12940, Indonesia

Email Sekretariat.

secretariat@apbi-icma.org

admin@apbi-icma.org

© 2025 APBI-ICMA

Situs web dibuat oleh