THE Department of Energy (DoE) said its upcoming coal auctions are designed to be fair to all potential bidders, after the current operator of the country’s largest coal mine site alleged that the government is seeking to shut it out of the auction.
Energy Secretary Sharon S. Garin said the coal auction applies the same rules to all prospective bidders and is not intended “to benefit or disadvantage any particular company.”
“If you qualify under our rules, it’s not because we made the rules specifically for one company. They apply to everyone,” Ms. Garin said on the sidelines of an event on Tuesday.
The government intends to conduct a bid round to offer three coal areas, which are estimated to hold around 207 million metric tons of reserves.
One of the sites up for bidding is the Semirara mine site in Antique, which has been long operated by the Consunji group’s Semirara Mining and Power Corp. (SMPC).
Ms. Garin said the DoE may release the terms of reference and other related issuances this month to give bidders a chance to prepare.
“We’re giving everyone a chance. It’s just that the rules have changed,” she said.
The auction was originally due to take place in April but was terminated after the DoE decided to tweak the framework for awarding the coal operating contracts. It aims to conduct the auctions this year.
Ms. Garin said the auction aims to allocate a larger portion of Semirara’s coal production for domestic use. The company exports most of its output even though it accounts for 97% of the country’s coal production.
“Because of the threat from the Middle East, especially the lessons we have learned from the situation there, we really need to rely on indigenous fuel sources. So, changes are being made,” Ms. Garin said.
SMPC has said that requiring the company to turn over its assets to participate puts the company at a disadvantage going into the auctions.
The company cited its substantial investments and decades of experience operating the Semirara mine.
“In other words, the DoE is telling us not to bid,” the company said in an Oct. 13 statement.
SMPC said it has invested more than P55 billion in its mining operation, deploying substantial resources on heavy equipment to access coal deposits. — Sheldeen Joy Talavera