The Philippines' Department of Energy (DoE) has announced that its upcoming coal auctions are structured to ensure fairness for all potential bidders. This statement comes after allegations from the operator of the country's largest coal mine that the government is trying to exclude them from the bidding process.
Equal Opportunity for All Bidders
If you qualify under our rules, it’s not because we made the rules specifically for one company. They apply to everyone.
Sharon S. Garin, Energy Secretary
The DoE aims to auction off three coal areas, estimated to contain around 207 million metric tons of reserves, including the significant Semirara mine site in Antique, long managed by Semirara Mining and Power Corp. (SMPC).
Secretary Garin indicated that the terms of reference for the auction will likely be released within the month, allowing bidders ample time to prepare. This follows a previous postponement of the auction originally scheduled for April, which was halted to revise the framework for awarding coal operating contracts.
- Three coal areas on auction, with 207 million metric tons of reserves.
- Semirara mine site, crucial for domestic coal production.
One of the primary goals of the auction is to allocate a larger share of Semirara's production for local consumption. Currently, the company exports a significant portion of its output, despite being responsible for 97% of the nation's coal production.
Citing geopolitical concerns, Garin emphasized the need for the Philippines to rely more on indigenous fuel sources. She noted, "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."
In contrast, SMPC has voiced concerns regarding the auction's implications for their operations. The company argues that requiring it to transfer its assets to participate puts them at a competitive disadvantage.
SMPC has invested over P55 billion in its mining operations, leveraging extensive resources and decades of experience in the Semirara area.