SEMIRARA Mining and Power Corp. (SMPC) said the Department of Energy’s (DoE) planned coal auction could force it out of business, as the Consunji-led company questioned the bidding procedures for the mine it currently operates.
“The auction for the Semirara mine violates known bidding protocols and is forcing SMPC, the current mine operator, out of the race and eventually out of business,” the company said in a statement on Tuesday.
The DoE is preparing to auction three coal areas with estimated reserves of about 207 million metric tons.
One of the areas is on Semirara Island in Antique, where SMPC has operated a coal mine for nearly 50 years. Its existing coal operating contract is scheduled to expire in July 2027.
SMPC said the auction process lacked several bidding documents and procedures that it considered necessary.
“There were no bid bulletins, no pre-qualification to screen the unqualified, no official reply to questions raised, no reply to all the letters sent by the current mine operator, no model contract, no minutes, and complete secrecy on how the award would be reached,” the company said.
SMPC also questioned a change in the bidding rules earlier this year, which it said made the highest financial bid the sole basis for selecting the winning bidder instead of considering technical capability.
The company said the selection criteria raised questions about whether a bidder without mining experience could meet production requirements and generate revenue for the government.
“The highest bidder with zero mining experience will most likely produce zero coal output and zero government share,” it said.
According to SMPC, the DoE canceled the initial bidding round in September without addressing the concerns it had raised.
The company also said a subsequent joint administrative order required it to turn over its assets to the DoE as a condition for participating in the new bidding round.
“In other words, the DoE is telling us not to bid,” SMPC said.
The DoE had not responded to BusinessWorld’s request for comment as of press time.
SMPC accounted for about 97% of domestic coal production last year, with output reaching a record 19.9 million metric tons, according to the company.
Its net income rose 2% to P8.58 billion in the first half of 2026, as higher earnings from its power business offset weaker contributions from coal operations.
Shares in SMPC fell 1.91% to close at P11.28 apiece on Tuesday. — Sheldeen Joy Talavera